apter 6 Homework 4 Vibrant Company had $950,000 of sales in each of three $525,0
ID: 2566557 • Letter: A
Question
apter 6 Homework 4 Vibrant Company had $950,000 of sales in each of three $525,000 in each of those years. It also maintained a $250,000 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 2016 that caused its year end 2016 inventory to appear on ts consecutive years 2016-2018, and it purchased merchandse costing statements as $230,000 rather than the correct $250,000. nts Required: 1. Determine the correct amount of the company's gross profit in each of the years 2016-2018 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit or each of the years 2016-2018. Hint Print Complete this questions by entering your answers in the below tabs. Required 1 Required 2 2016-2018. in each of the years e Income Statements 2017 2013 2016 Cost of goods sold Prev 40, 9 lil Next >Explanation / Answer
Comparative income statements Particulars 2016 2017 2018 Total a Sales 950000 950000 950000 2850000 b Opening stock 250000 250000 250000 750000 c Purchases 525000 525000 525000 1575000 d Closing Stock 250000 250000 250000 750000 e COGS ( b+c-d) 525000 525000 525000 1575000 f Correct Gross profit (a-e) 425000 425000 425000 1275000 Please hit the like button if the answer helped you else leave a comment for further clarification. Thank you! All the best!
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