Sunland $$Fishing $$Gear $$reported $$the $$following $$amounts $$for $$its $$cost $$of $$goods $$sold $$and $$ending $$inventory:

Cost $$of $$goods $$sold

Ending $$inventory

$2024$

$

$197$

$,$

$200$

$30$

$,$

$000$

$2023$

$

$202$

$,$

$200$

$30\mathrm{.}000$

Sunland $$made $$two $$errors: $$

$(1)2023$

$$ending $$inventory $$was $$overstated $$by $$

$56\mathrm{.}380$

$,$

$$and $$

$(2)2024$

$$ending $$inventory $$was $$understated $$by $$$

$4$

$,$

$880$

$.$

$$

SUPPORT

$($

a

$)$

$5$

:

$23$

$$PM

ENGDetermine $$the $$impact $$of $$the $$errors $$on $$profit $$for $$

$2023$

$$and $$

$2024$

$$and $$on $$owner$\text{'}$s $$equity $$at $$the $$end $$of $$

$2023$

$$and $$

$2024$

$.$

In $$

$2023$

$$profit $$is

~ $$by $$$

through $$to $$owner$\text{'}$s $$equity $$in $$

$2023$

$$to $$produce $$an

$,$

$$the $$amount $$of $$the $$error $$in $$ending $$inventory$.$This $$error $$flows $$of$

In $$

$2024$

$$both $$errors $$have $$an $$impact$.$The $$net $$effect $$is $$an $$result $$of $$the $$$

$6\mathrm{.}380$

$$ending $$inventory$.$

of $$the $$beginning $$inventory $$plus $$$

Owner's $$equity $$in $$

$2024$

$$would $$show $$only $$an

of$

of $$

$2023$

$$would $$be $$offset $$by $$the $$$

$6$

$,$

$380$

of $$profit $$by $$$

$.$

$$This $$is $$a

of

$.$

$$The $$$

$6$

$,$

$380$

in $$profit $$caused $$by $$the $$impact $$on $$beginning

SUPPORT

inventory $$in $$

$2024$

$.$

e $$Textbook $$and $$Media

ENG

US

$6$

:

$26$

$$PM

$2024$

$-$

$03$

$-$

$05$