Partial income statements for Sherwood Company summarized for a four-year period show the following: W Net Sales Cost of Goods Sold Gross Profit 2015 $1,700,000 1,241,000 $ 459,000 2016 $2,100,000 1,512,000 $ 588,600 2017 $2,200,000 1,628,000 $ 572,000 2018 $2,700,000 1,971,000 $ 729, Skipped An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $17,000. 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 () before the correction and (b) after the correction 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? To Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error SHERWOOD COMPANY Income Statements (Corrected) 2015 2016 2017 2018 Cost of Goods Sold Gross Profit Red 2A > Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,7ee, eee 1,241,600 $ 459,800 2016 $2,100,000 1,512,000 $ 588,600 2017 $2,200,eee 1,628, eee $ 572,eee 2018 $2,7ee, eee 1,971,600 $ 729,000 ipped An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $17,000. 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 Reg 28 Req 28 Reg 2A Compute the gross profile percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 2015 2016 Before Correction After Correction Regt Partial income statements for Sherwood Company summarized for a four year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,700,000 1,241,600 $ 459,00 2016 $2,100,000 1,512,600 $ $ 588. 588,000 2017 $2,200,000 1,628,600 $ 572,000 2018 $2,700,000 1,971, eee $ 729,000 points Skipped An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $17,000. 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 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. Reg 1 Red 2A Reg 28 Does the pattern of gross profit percentages lend confidence to your corrected amounts? ( Res 2A
