Lake Anna Marine Supply reported the following comparative income statements for the years ended June 30, 2014, and 2013:

Lake Anna€™s president and shareholders are thrilled by the company€™s boost in sales and net income during 2014. Ten the accountants for the company discover that ending 2013 inventory was understated by $3,600. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Lake Anna really perform in 2014 as compared with2013?

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A1 Lake Anna Marine Supply Income Statements For the Years Ended June 30, 2014 and 2013 2014 2013 216,000 $191,000 Sales revenue 4 Cost of goods sold: $ 15,000 105,000 11,500 88,000 99,500 Net purchases 7 Cost of goods available 20,000 | Ending inventory 9 Cost of goods sold 10 Gross profit 102,000 14,000 51,000 106,500 46,000 Operating expenses 12 Net income