Score: 0 of 1 pt 7 of 7 (1 complete HW Score 3.57%, 0.25 of 7 pts P6-68A (similar to) Question Help The accounting records of Waterville Home Store show these data in ons) (Click the icon to view the income statements) The shareholders are very happy with Watervie's eady increase in net income. However, auditors discovered the ending inventory for 2016 was understated by $5 million and that the ending inventory for 2017 was understated by million The ending inventory at December 31, 2018, was correct Read the permet Data Table 2018 2017 2016 2010 Net as revenue $ 47 $ 44 5 41 Requirement 1. Show corrected income statements for each of the three years Waterville Home Store Income Statements (adapted amounts in millions) Years Ended December 31, 2018, 2017 and 2016 2018 2017 Notes revenue Cost of goods sold Beginning inventory Net purchases Cost of goods available Loss ending inventory Cost of goods sold Gross profit 9 $ $ 7 B 32 30 37 Cost of goods sold Beginning inventory Net purchas Cost of goods wall Lessenting ventory Cost of goods sold Gross profit Operating expenses 40 199 (10) 30 31 29 13 12 14 4 4 10 9 $ Net income Enter any number in the edit fields and then click Check Answer. parts ning Print Done Done CK Answer i Requirements 1. Show corrected income statements for each of the three years. 2. How much did these assumed corrections add to or take away from Waterville's total net income over the three-year period? How did the corrections affect the trend of net income? 3. Will Waterville's shareholders still be happy with the company's trend of net income? Explain. Print Done P0-b8A (similar to) Question Help The accounting records of Waterville Home Store show these data (in millions). (Click the icon to view the income statements.) The shareholders are very happy with Waterville's steady increase in net income. However, auditors discovered that the ending inventory for 2016 was understated by $5 million and that the ending inventory for 2017 was understated by $6 million. The ending inventory at December 31, 2018, was correct Read the requirements. A Requirement 1. Show corrected income statements for each of the three years. Waterville Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2018, 2017, and 2016 2018 2017 2016 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Loss ending inventory Cost of goods sold Gross profit Enter any number in the odit fields and then click Check Answer 3 parts Clear All Check Answer remaining 2018 2017 2016 Net sales revenue. $ 47 $ 44 $ 41 $ $ 9 $ 8 $ 7 34 32 30 Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit.... 40 37 43 (10) (9) (8) 33 31 29 14 13 12 4 4 Operating expenses $ 10 $ 9 8 Net income Requirements 1. Show corrected income statements for each of the three years. 2. How much did these assumed corrections add to or take away from Waterville's total net income over the three-year period? How did the corrections affect the trend of net income? 3. Will Waterville's shareholders still be happy with the company's trend of net income? Explain
