Question
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started