Vibrant Company had $$1,040,000$ of sales in each of Year $1,$ Year $2,$ and Year $3,$ and it purchased merchandise costing $$570,000$ in each of those years. It also maintained a $$340,000$ physical inventory from the beginning to the end of that three$-$year period. In accounting for inventory, it made an error at the end of Year $1$ that caused its Year $1$ ending inventory to appear on its statements as $$320,000$ rather than the correct $$340,000.$

Determine the correct amount of the company's gross profit in each of Year $1,$ Year $2,$ and Year $3.$

Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year $1,$ Year $2,$ and Year $3.$

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Required $1$

Required $2$

Determine the correct amount of the company's gross profit in each of Year $1,$ Year $2,$ and Year $3.$

VIBRANT COMPANY