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Correcting an inventory error---two years Great Foods Grocery reported the following comparative income statements for the years ended June 30, 2015: Great Food Grocery Income

Correcting an inventory error---two years

Great Foods Grocery reported the following comparative income statements for the years ended June 30, 2015:

Great Food Grocery

Income statements

Years ended June 30, 2016 and 2015

Sales revenue

$13,900

$120,000

Cost of goods sold:

Beginning merchandise inventory

$13,000

$12,000

Net cost of purchase

76,00

70,00

Cost of goods available for sale

89,000

82,000

Less: ending merchandise inventory

17,000

13,000

Cost of goods sold

72,000

69,000

Gross profit

67,000

51,000

Operating expenses

23,000

18,000

Net income

$44,000

$33,000

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