Partial income statements for Sherwood Company summarized for a four-year period show the following: An audit revealed that in determining these amounts, the ending inventory for 2018 was overstated by $20 , 000 . The inventory balance on December 31, 2019, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year ( a before the correction and ( b ) after the correction. (Round your answers to the nearest whole percent.) 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 2-b. Do the results lend confidence to your corrected amounts? Yes No
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ICT Role in 21st Century Education & its Challenges.pptx
Partial income statements for Sherwood Company summarized for a four-y.docx
1. Partial income statements for Sherwood Company summarized for a four-year period show the
following: An audit revealed that in determining these amounts, the ending inventory for 2018
was overstated by $20 , 000 . The inventory balance on December 31, 2019, was accurately
stated. The company uses a periodic inventory system. Required: 1. Restate the partial income
statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross
profit percentage for each year ( a before the correction and ( b ) after the correction. (Round
your answers to the nearest whole percent.) 2-a. Compute the gross profit percentage for each
year (a) before the correction and (b) after the correction. (Round your answers to the nearest
whole percent.) 2-b. Do the results lend confidence to your corrected amounts? Yes No
