$3$

Assume that Volleyball Pro Equipment had $$940,000$ of sales during each of three consecutive years, and it purchased merchandise costing $$460,000$ during each of the years. It also maintained a $$180,000$ inventory from the beginning to the end of the three$-$year period. However, it made an error at the end of the first year, $2023,$ that caused its ending $2023$ inventory to appear on its statements at $$160,000$ rather than the correct $$180,000.$

$2$

points

Required:

Calculate the actual amount of the company's gross profit in each of the years.

Gross profit

Prepare a comparative income statement to show the effect of this error on the company's cost of goods sold and gross profit in $2023,2024,$ and $2025.$

$\backslash$table$[[,\backslash$table$[[$For Years Ended$],[$December $31,2023,2024,$ and$],[2025],[$Income Statement$],[$Information$],[$Should Have Been Reported$],[$As:$]],\backslash$table$[[$Income Statement Information$],[$Actually Reported For$],[$Years Ended December $31]]],[,2023,2024,2025],[,,,],[$Cost of goods sold:,,,,$]]$