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The Finish Line Inc. reported the following items in its fiscal 2014 financial report (dollars in millions): 2014 2013 Sales $1,821 $1,670 Cost of goods
The Finish Line Inc. reported the following items in its fiscal 2014 financial report (dollars in millions):
2014 | 2013 | |||||||
Sales | $1,821 | $1,670 | ||||||
Cost of goods sold: | ||||||||
Beginning inventory | $304 | $244 | ||||||
Purchases | 1,276 | 1,183 | ||||||
Goods available for sale | $1,580 | $1,427 | ||||||
Less: Ending inventory | 343 | 304 | ||||||
Cost of goods sold | 1,237 | 1,123 | ||||||
Gross profit | $584 | $547 |
Assume that counting errors caused the ending inventory in 2013 to be understated by $50 and the ending inventory in 2014 to be overstated by $50.
Compute the impact of these errors on cost of goods sold for the year ended December 31, 2014, and on the inventory balance as of December 31, 2014. (Enter amounts in millions.)
Corrected Ending Inventory | $ | |
Corrected Cost of Goods Sold | $ |
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