Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,100,000 869,000 $ 231,000 2016 $1,500,000 1,170,000 $ 330,000 2017 $1,600,000 1,280,000 $ 320,000 2018 $2,100,000 1,659,000 $ 441,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $11,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY Income Statements (Corrected) 2015 2016 2017 2018 Net Sales Cost of Goods Sold Gross Profit Req1 Req 2 > Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,100,000 869,000 $ 231,000 2016 $1,500,000 1,170,000 $ 330,000 2017 $1,600,000 1,280,000 $ 320,000 2018 $2,100,000 1,659,000 $441,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $11,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inve Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 2B Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 2015 2016 2017 2018 Before Correction After Correction Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,100,000 869,000 $ 231,000 2016 $1,500,000 1,170,000 $ 330,000 2017 $1,600,000 1,280,000 $ 320,000 2018 $2,100,000 1,659,000 $ 441,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $11,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inver Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Req Req 2A Reqaa | Req zB Reg 2B Does the pattern of gross profit percentages lend confidence to your corrected amounts? Yes No
