Solve the Average Merchandise Inventory and Inventory Turnover for 2017, 2018, and 2019.

2018 $ 2017 $ $ 214,000 166,000 177,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale $ $ 26,000 140,000 $ 31,000 106,000 47,000 92,000 166,000 35,000 137,000 26,000 139,000 31,000 Less: Ending Merchandise Inventory Cost of Goods Sold 131,000 111,000 108,000 Gross Profit Operating Expenses 83,000 57,000 26,000 55,000 30,000 25,000 69,000 30,000 39,000 $ $ Net Income B 1 Prepare corrected income statements for the three years. m Ending Merchandise Inventory Understated by $7,000 177,000 Income Statement For the Years Ended Dec 31, 2019, 2018 and 2017 Ending Merchandise Inventory Overstated by 5 $8,000 Correct 6 Net Sales Revenue 214,000 166,000 7 Cost of Goods Sold Beginning Merchandise Inventory 26,000 38,000 9 Net Cost of Purchase 140,000 106,000 Less: Ending Merchandise Inventory 166,000 144,000 11 Cost of Goods Available for Sale 27,000 26,000 12 Cost of Goods Sold 139,000 118,000 13 Gross Profit 75,000 48,000 14 Operating Expenses 57,000 30,000 15 Net Income 18,000 18,000 16 17 18 COGS 7 Avg Merch Inv 19 2019 139,000 #DIV/0! 20 2018 118,000 #DIV/0! 2017 101,000 #DIV/0! 47,000 92,000 139,000 38,000 101,000 76,000 30,000 46,000 Inv Turnover 2019 2018 2017 365 365 365 365 #DIV/0! #DIV/0! #DIV/0