Vibrant Company had of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing in each of those years. It also maintained a physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as rather than the correct .
Determine the correct amount of the company’s gross profit in each of Year 1, Year 2, and Year 3.
Prepare comparative income statements to show the effect of this error on the company’s cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct amount of the company’s gross profit in each of Year 1, Year 2, and Year 3. Pequired 1 Required 2