Problem
Sweet Acacia Industries reported these income statement data for a 2-year period.
2017 2016
Sales revenue $273,100 $229,080
Beginning inventory 41,670 35,060
Cost of goods purchased 202,010 178,690
Cost of goods available for sale 243,680 213,750
Less: Ending inventory 55,860 41,670
Cost of goods sold 187,820 172,080
Gross profit $85,280 $57,000
Sweet Acacia Industries uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct. However, the ending inventory at December 31, 2016, is overstated by $8,720.
1. Prepare correct income statement data for the 2 years.
2016 2017
Sales
Cost of goods sold
Beginning inventory
Cost of goods purchased
Cost of goods available for sale
Less:Ending Inventory
Cost of goods sold
Gross profit.