Prepare comparative income statements


Ringo Company had $900,000 of sales in each of three consecutive years 2010 - 2012, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $200,000 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 $180,000 rather than the correct $200,000. 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.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Prepare comparative income statements
Reference No:- TGS0719131

Expected delivery within 24 Hours