Determine the correct amount of the company


Ringo Company had $960,000 of sales in each of three consecutive years 2010-2012, and it purchased merchandise costing $530,000 in each of those years. It also maintained a $260,000 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 2010 that caused its year-end 2010 inventory to appear on its statements as $240,000 rather than the correct $260,000. 1. Determine the correct amount of the company's gross profit in each of the years 2010 2012 Gross profit 2010 Gross Profit 2011 Gross Profit 2012 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 the years 2010?2012.

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Accounting Basics: Determine the correct amount of the company
Reference No:- TGS0672402

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