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An audit of the inventory records of Missouri Inc. identified a number of errors. These errors are summarized in Exhibit A below: EXHIBIT A Year

An audit of the inventory records of Missouri Inc. identified a number of errors. These errors are summarized in Exhibit A below:

EXHIBIT A

Year

Net Income

Description

Reported

of Error

2016

$96,000

Understatement of ending inventory

$8,800

2017

$76,000

Overstatement of ending inventory

$1,200

2018

$79,200

Overstatement of ending inventory

$14,400

2019

$84,000

Understatement of ending inventory

$16,000

2020

$96,000

Overstatement of ending inventory

$4,160

Instructions

  1. As financial accountant for Missouri, you have been asked to calculate the corrected net income amounts for each of the five years based on the audit findings.

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