Branson Electric prepared the following condensed income statements for two successive years Sales Cost of goods sold Gross profit on sales Operating expenses Net incone 2021 $ 4,000,000 1,550,000 $ 2,450,000 450,000 $ 2,000,000 2020 $ 3,950,000 950,000 $3,000,000 200,000 $ 2,800,000 At the end of 2020 (right hand column), the inventory was understated by $23,500, but the error was not discovered until after the accounts had been closed and financial statements prepared at the end of 2021 The balance sheets for the two years showed owner's equity of $310,000 at the end of 2020 and $350,000 at the end of 2021 (Branson is organized as a sole proprietorship and does not incur income taxes expense ) a Compute the corrected net income figures for 2020 and 2021 b Compute the gross profit amounts and the gross profit percentages for each year on the basis of corrected data (Round Gross profit percentage to 2 decimal places (ie 1234 should be entered as 12 34)) a Corrected net income b Gross profit amount Gross profit percentage 2021 2020

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Branson Electric prepared the following condensed income statements for two successive years  Sales Cost of goods sold Gross profit on sales Operating expenses Net incone 2021 $ 4,000,000 1,550,000 $ 2,450,000 450,000 $ 2,000,000 2020 $ 3,950,000 950,000 $3,000,000 200,000 $ 2,800,000 At the end of 2020 (right hand column), the inventory was understated by $23,500, but the error was not discovered until after the accounts had been closed and financial statements prepared at the end of 2021  The balance sheets for the two years showed owner's equity of $310,000 at the end of 2020 and $350,000 at the end of 2021  (Branson is organized as a sole proprietorship and does not incur income taxes expense ) a  Compute the corrected net income figures for 2020 and 2021  b  Compute the gross profit amounts and the gross profit percentages for each year on the basis of corrected data  (Round  Gross profit percentage  to 2 decimal places (ie  1234 should be entered as 12 34)) a Corrected net income b  Gross profit amount Gross profit percentage 2021 2020

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Fundamental Accounting Principles

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Fundamental Accounting Principles

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