Necessary Toys Company's condensed income statements for two years follow.
|
2014 |
|
2013 |
Sales |
$252,000 |
|
$210,000 |
Cost of goods sold |
150,000 |
|
108,000 |
Gross margin |
$102,000 |
|
$102,000 |
Operating expenses |
60,000 |
|
60,000 |
Income before income taxes |
$ 42,000 |
|
$ 42,000 |
After the end of 2014, the company discovered that an error had resulted in an $18,000 understatement of the 2013 ending inventory.
Compute the corrected operating income for 2013 and 2014