Condensed income statements for Werly Corporation are shown below for two years. 2021 2022 Sales $75,000 $90,000 Cost of Goods Sold
Condensed income statements for Werly Corporation are shown below for two years.
2021 2022
Sales $75,000 $90,000
Cost of Goods Sold 45,000 54,000
Gross Profit $30,000 $36,000
Operating Expense 15,000 15,000
Net Income $15,000 $21,000
Compute the corrected net income for 2022 assuming that the inventory at the end of 2021 was mistakenly overstated by $5,000.
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