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Uncle Bill was concerned about the operating results tor 2017 and a9Ked his recently hired accountant, If sales increased in 2017, why was net income
Uncle Bill was concerned about the operating results tor 2017 and a9Ked his recently hired accountant, "If sales increased in 2017, why was net income less than half of what it was in 2016?" In February of 2018, Uncle Bill got his answer: "The ending inventory reported in 2016 was overstated by $21, 150 for merchandise that we were holding on consignment on behalf of Kirk's Servistar. We still keep some of their appliances in stock, but the value of these items was not included in the 2017 inventor count because we don't own them." a. Recast the 2016 and 2017 income statements to take into account the correction of the 2016 ending inventory error. Calculate the combined net income for 2016 and 2017 before and after the correction of the error
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