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- 2019 2016 Not Sales Revenue 2017 $ 213,000 $ 161,000 Cost of Goods Sold: 167.000 $ 23,000 Beginning Merchandise Inventory Net Cost of Purchases

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- 2019 2016 Not Sales Revenue 2017 $ 213,000 $ 161,000 Cost of Goods Sold: 167.000 $ 23,000 Beginning Merchandise Inventory Net Cost of Purchases $ 27,000 140,000 38,000 93,000 106,000 Cost of Goods Available for Sale 163,000 133,000 131,000 Less: Ending Merchandise Inventory 31,000 23,000 27,000 Cost of Goods Sold 132,000 110,000 104,000 Gross Profit 83.000 81,000 54,000 51,000 21,000 24,000 Operating Expenses $ 27,000 S 30,000 5 39,000 Net Income Print Done 1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Print Done Plush River Carpets Income Statement For the Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Ending Merchandise Inventory Overstated by $6,000 Ending Merchandise Inventory Understated by $5,000 Correct Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit n... Choose from any list or enter any number in the input fields and then continue to the next question Operating Expenses Net Income Requirement 2. State whether each year's net income--before your correctionss understated or overstated, and indicate the amount of the under Year: Prior to correction net income was 2019 2018 2017 Requirement 3. Compute the inventory tumover and days' sales in inventory using the corrected income statement for the three years. (Round all nur Select the labels and enter the amounts to compute inventory turnover for each year. (Round your answers to two decimal places, XXX) Inventory tumover 2019 times 2018 times 2017 times Now select the labels and enter the amounts to compute days' sales in inventory for each year. (Enter all amounts to two decimal places, XX

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