Question - Smart Watch Company reported the following income statement data for a 2-year period.
|
|
2016
|
2017
|
|
Sales revenue
|
$210,000
|
$260,000
|
|
Cost of goods sold
|
|
|
|
Beginning inventory
|
33,000
|
44,000
|
|
Cost of goods purchased
|
193,000
|
212,000
|
|
Cost of goods available for sale
|
226,000
|
256,000
|
|
Ending inventory
|
44,000
|
55,000
|
|
Cost of goods sold
|
182,000
|
201,000
|
|
Gross profit
|
$28,000
|
$59,000
|
Smart 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, was overstated $6,000.
Prepare correct income statement data for the 2 years.