Hull Company reported the following income statement information for the current year:

Sales $ 413,000

Cost of goods sold:

Beginning inventory $ 136,500

Cost of goods purchased 276,000

Cost of goods available for sale 412,500

Ending inventory 147,000

Cost of goods sold 265,500

Gross profit $ 147,500

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $23,000. Given this information, the correct gross profit would be:

Multiple Choice

• $124,500.
• $147,500.
• $170,500.
• $137,500.
• $113,500