Correction of Inventory Errors The annual reported income for Salazar Company for the years 2006–2009 is shown here.

However, a review of the inventory records reveals inventory misstatements.

Required:
Using the data provided, calculate the correct net income for each year.

Transcribed Image Text:

2006 2007 2008 2009 Reported net income Inventory overstatement, end of year Inventory understatement, end of year $30,000 $40,000 $35,000 $45,000 3,000 2,000 4,000 1,000