Waymire Industries reports ending inventory of $51,000 at June 30, 2017, which represents arn overstatement of $20,000. At the end of the next fiscal year, June 30, 2018, Waymire's ending inventory is understated by $36,000. At the end of the next fiscal year, June 30, 2019, ending Fiscal Year Fiscal Year Fiscal Year 6/30/2017 6/30/2018 6/30/2019 inventory is correct at $6,500. Other pertinent information is provided below: Ended Ended Ended 2 $186,000 $213,000 $491,000 $516,000 $61,200 $72,500 $65,000 $194,000 $508,000 $70,900 $47,000 Correct inventory balance, beginning of the year orrect purchases for the fiscal year Correct sales revenue for the fiscal year Correct administrative and selling expenses Using the information that follows, determine the amounts by which net income is over- or understated for each year, 2017, 2018, and 2019. Prove the effects to yourself- walking through the incorrect and correct t-accounts and preparing the income statements for 2017, 2018, and 2019. Also comment on the cumulative income statement difference. 1. T-accounts for invent 2. Incom 3. A demonstration is provided of the total net income differences for the cumulative period ory are prepared for all three years using: (a) incorrect inventory amounts, and (b) correct inventory amounts. inventory amounts, and (b) correct inventory amounts using incorrect and correct inventory amounts. e statements are prepared for FY 2017, 2018, and 2019 based on: (a) incorrect Waymire Industries reports ending inventory of $51,000 at June 30, 2017, which represents arn overstatement of $20,000. At the end of the next fiscal year, June 30, 2018, Waymire's ending inventory is understated by $36,000. At the end of the next fiscal year, June 30, 2019, ending Fiscal Year Fiscal Year Fiscal Year 6/30/2017 6/30/2018 6/30/2019 inventory is correct at $6,500. Other pertinent information is provided below: Ended Ended Ended 2 $186,000 $213,000 $491,000 $516,000 $61,200 $72,500 $65,000 $194,000 $508,000 $70,900 $47,000 Correct inventory balance, beginning of the year orrect purchases for the fiscal year Correct sales revenue for the fiscal year Correct administrative and selling expenses Using the information that follows, determine the amounts by which net income is over- or understated for each year, 2017, 2018, and 2019. Prove the effects to yourself- walking through the incorrect and correct t-accounts and preparing the income statements for 2017, 2018, and 2019. Also comment on the cumulative income statement difference. 1. T-accounts for invent 2. Incom 3. A demonstration is provided of the total net income differences for the cumulative period ory are prepared for all three years using: (a) incorrect inventory amounts, and (b) correct inventory amounts. inventory amounts, and (b) correct inventory amounts using incorrect and correct inventory amounts. e statements are prepared for FY 2017, 2018, and 2019 based on: (a) incorrect
