Question
Over a four-year period, Custard Corporation reported the following series of gross profits. 2021 2022 2023 2024 Net sales $46,000 $52,000 $60,000 $76,000 Cost of
Over a four-year period, Custard Corporation reported the following series of gross profits.
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Net sales | $46,000 | $52,000 | $60,000 | $76,000 |
| Cost of goods sold | 22,200 | 36,200 | 18,200 | 38,200 |
| Gross profit | $23,800 | $15,800 | $41,800 | $37,800 |
In 2024, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory was understated by $8,840 in 2022. Inventory in all other years is correct.
2. Calculate the gross profit ratio for each of the four years based on corrected amounts. (Round your answers to the nearest whole percent.)
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Internal Auditing: Principles And Techniques
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke
1st Edition
0894131672, 978-0894131677
