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Effects of Inventory Errors Necessary Toys Company's condensed income statements for two years follow. After the end of 2014, the company discovered that an error
Effects of Inventory Errors Necessary Toys Company's condensed income statements for two years follow. After the end of 2014, the company discovered that an error had resulted in an $18,000 understatement of the 2013 ending inventory. Compute the corrected operating income for 2013 and 2014. What effect will the error have on operating income and stockholders' equity for 2015
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