Required information [The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: 2016 $ 2,027,000 1,492,000 535,000 473,000 62,000 21,700 2017 $ 2,451,000 1,616,000 835,000 505,000 330,000 115,500 2018 $ 2,704,000 1,770,000 934,000 519,000 415,000 145,250 269,750 2019 $ 2,979,000 2,101,000 878,000 537,000 341,000 119,350 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (35%) Net income 40,300 %24 214,500 221,650 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system.
Required information [The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: 2016 $ 2,027,000 1,492,000 535,000 473,000 62,000 21,700 2017 $ 2,451,000 1,616,000 835,000 505,000 330,000 115,500 2018 $ 2,704,000 1,770,000 934,000 519,000 415,000 145,250 269,750 2019 $ 2,979,000 2,101,000 878,000 537,000 341,000 119,350 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (35%) Net income 40,300 %24 214,500 221,650 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The company uses a periodic inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The income statement for Pruitt Company summarized for a four-year period shows the following:
2016
$ 2,027,000
1,492,000
535,000
473,000
62,000
21,700
2017
$ 2,451,000
1,616,000
835,000
505,000
330,000
115,500
2018
$ 2,704,000
1,770,000
934,000
519,000
415,000
145,250
2019
$ 2,979,000
000 ו21
878,000
537,000
341,000
119,350
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Income tax expense (35%)
Net income
40,300
$
214,500
$
269,750
$
221,650
An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The
company uses a periodic inventory system.
2. Compute the gross profit percentage for each year before the correction and after the correction. (Round your answers to t
nearest whole percent.)
2016
2017
2018
2019
Before correction
%
%
After correction
%
%
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3caa30de-d7d3-452d-9223-41cdeebfe53c%2Fad5cacea-a594-465f-ac20-d346f2473863%2Fh9x7bzg_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The income statement for Pruitt Company summarized for a four-year period shows the following:
2016
$ 2,027,000
1,492,000
535,000
473,000
62,000
21,700
2017
$ 2,451,000
1,616,000
835,000
505,000
330,000
115,500
2018
$ 2,704,000
1,770,000
934,000
519,000
415,000
145,250
2019
$ 2,979,000
000 ו21
878,000
537,000
341,000
119,350
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Income tax expense (35%)
Net income
40,300
$
214,500
$
269,750
$
221,650
An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $27,000. The
company uses a periodic inventory system.
2. Compute the gross profit percentage for each year before the correction and after the correction. (Round your answers to t
nearest whole percent.)
2016
2017
2018
2019
Before correction
%
%
After correction
%
%
%
%
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