By the Bay Marine Supply reported the following comparative income statements for the years ended November 30,2016, and 2015:

By the Bay's president and shareholders are thrilled by the company's boost in sales and net income during 2016. Then the accountants for the company discover that ending 2015 inventory was understated by $9,000. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did By the Bay Marine Supply really perform in 2016 as compared with 2015?

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A1 By the Bay Marine Supply Income Statements For the Years Ended November 30, 2016 and 2015 2016 2015 Sales revenue Cost of goods sold 135,000 122,000 Beginning invento Net purchases Cost of goods available 14,500 76,000 90,500 19,000 14,000 75,000 89,000 (14,500 8 Ending inventory 9 Cost of goods sold 10 Gross profit 11 Operating expenses 12 Net income 13 71,500 63,500 74,500 47,500