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Hi could you please do this question ASAP, my test is timed. (ALSO IM NOT TOO SURE IF I DID REQUIREMENT 1 RIGHT) Vibrant Company
Hi could you please do this question ASAP, my test is timed.
(ALSO IM NOT TOO SURE IF I DID REQUIREMENT 1 RIGHT)
Vibrant Company had $1,090,000 of sales in each of three consecutive years 2016-2018, and it purchased merchandise costing $595,000 in each of those years. It also maintained a $390,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $370,000 rather than the correct $390,000. Required: 1. Determine the correct amount of the company's gross profit in each of the years 2016-2018 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016-2018Step by Step Solution
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