Vibrant Company had $$850,000$ of sales in each of Year $1,$ Year $2,$ and Year $3,$ and It purchased merchandise costing $$500,000$ in each

of those years. It also maintained a $$250,000$ physical Inventory from the beginning to the end of that three$-$year perlod. 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 $$230,000$

rather than the correct $$250,000.$

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

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

Required $2$

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 $3.$