analysis of inventory erros

Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not inc 5 Exercise 5-12 Analysis of inventory errors LO A2 166 points Vibrant Company had $900,000 of sales in each of Year 1 Year 2 nd Year 3, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $200,000 physical Inventory from the beginning to the end of that three year period. In accounting for inventory, it made an error at the end of Year i that caused its Year 1 ending Inventory to appear on its statements as $180,000 rather than the correct $200,000. Required: 1. Determine the correct amount of the company's gross profit in each of Year 1, Year 2. and Year 3 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1 Year 2 and Year 3. Answer is complete but not entirely correct. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements Year 1 Year 2 900,000 $ 900.000 Year a 900,000 Jyear toca $ 2.700.000 o Sales Cost of goods sold Beginning inventory Cost of purchases Goods available for sale Ending Inventory Cost of goods sold Gross prof OOOO $ 200.000 500,000 700.000 200,000 $ 200,000 500.000 700.000 200 000 200.000 500.000 700,000 200.000 500,000 5 400,000 500,000 $ 400,000 500,000 5400.000 1,500,000 $ 1.200.000 Required 2 > Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does 5 Exercise 5-12 Analysis of inventory errors LO A2 166 points Vibrant Company had $900,000 of sales in each of Year 1 Year 2. and Year 3, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $200,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year that caused its Year 1 ending inventory to appear on its statements as $180,000 rather than the correct $200,000 Required: 1. Determine the correct amount of the company's gross profit in each of Year 1 Year 2, and Year 3 2. Prepare comparative Income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1 Year 2. and Year 3 Answer is complete but not entirely correct. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Prepare comparative Income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year I Year 2 nd Year 3. VIBRANT COMPANY Comparative Income Statements Yeart Year 2 $900,000 $ 900,000 Year $ 800,000 year to $ 2,700,000 Sales Coat of goods sold Beginning inventory Cost of purchases Goods available for sale Ending Inventory Cost of goods sold Gross profit 200,000 500,000 700.000 220,000 0 0 0 200 000 500.000 700.000 180.000 200.000 500.000 700,000 200.000 480,000 $ 420,000 520,000 S 300.000 500,000 $ 400.000 1 500 000 S 1.200.000 Required 1