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The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter all amounts in millions as provided in the question.) New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 2019

The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter all amounts in millions as provided in the question.) New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 2019

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Data table Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income $ 2021 11 27 38 (12) $ 47 26 21 7 $ 14 $ 2020 $ 10 25 35 (11) GA $ 44 24 20 7 13 $ 2019 9 23 32 (10) $ 41 $ 22 19 7 12 X
Transcribed Image Text:Data table Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income $ 2021 11 27 38 (12) $ 47 26 21 7 $ 14 $ 2020 $ 10 25 35 (11) GA $ 44 24 20 7 13 $ 2019 9 23 32 (10) $ 41 $ 22 19 7 12 X
The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 0000 0000 O amounts in millions as provided in the question.) 2019
Transcribed Image Text:The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 0000 0000 O amounts in millions as provided in the question.) 2019
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