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Unformatted text preview: in order except for the following: (1) An arithmetic error in the computation of inventory at the end of 2003 had caused a $40,000 understatement in that inventory, and (2) a duplication of figures in the computation of inventory at the end of 2005 had caused an overstatement of $81,750 in that inventory. The company uses the periodic inventory system and these errors had not been brought to light prior to your investigation. Instructions 1. Prepare a revised three-year partial income statement summary. 2. Comment on the trend of gross profit and gross profit percentage before and after the revision....
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This note was uploaded on 12/08/2009 for the course ACCT 101 taught by Professor Jim during the Spring '09 term at CSU Channel Islands.
- Spring '09
- Income Statement