Problem:
CWD, Inc., reported these figures for its fiscal year (amounts in millions):
|
Net sales
|
$ 2,500
|
|
Cost of goods sold
|
1,160
|
|
Ending inventory
|
480
|
Required:
Suppose CWD later learns that ending inventory was overstated by $13 million. What are the correct amounts for (a) net sales, (b) ending inventory, (c) cost of goods sold, and (d) gross profit?
Note: Provide support for your rationale.