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Columbia Video Sales Ltd, reported the following data. The shareholders are very happy with Columbia's steady increase in net income BE! (Click the icon to

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Columbia Video Sales Ltd, reported the following data. The shareholders are very happy with Columbia's steady increase in net income BE! (Click the icon to view the income statements.) Auditors discovered that the ending inventory for 2015 was understated by $2 million and that the ending inventory for 2016 was also understated by $2 million. The ending inventory at December 31, 2017, was correct. Requirements 1. Show corrected income statements for each of the three years 2. How much did these assumed corrections add to or take away from Columbia's total net income over the three-year period? How did the corrections affect the trend of net income? 3. Will Columbia's shareholders still be happy with the company's trend of net income? Give the reason for your answer Requirement 1. Show corrected income statements for each of the three years. Columbia Video Sales Ltd. Income Statements (adapted; amounts in millions) Years Ended December 31, 2017, 2016, and 2015 2017 2016 2015 Net sales revenue Cost of goods sold Beginning inventory Net purchases Enter any number in the edit fields and then click Check Answer. Auditors discovered that the ending inventory for 2015 was understated by $2 million and that the ending inventon also understated by $2 million. The ending inventory at December 31, 2017, was correct. Requirements 1. Show corrected income statements for each of the three years. 2. How much did these assumed corrections add to or take away from Columbia's total net income over the three- did the corrections affect the trend of net income? 3. Will Columbia's shareholders still be happy with the company's trend of net income? Give the reason for your am Net sales revenue Cost of goods sold Beginning inventory Net purchases Goods available for sale Less Ending inventory Cost of goods sold Gross profit Total operating expenses Net income Enter any number in the edit fields and then click Check Answer. 3 parts 5 remaining Clear All Check Answer 2016 36 Columbia Video Sales Ltd. Income Statements for the Years Ended (Amounts in millions) 2017 2016 Net sales revenue Cost of goods sold Beginning inventory Net purchases Goods available for sale Less: Ending inventory Cost of goods sold Gross profit Total operating expenses 338 Net income le Print Done

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