[The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,043,000 2017 $2,467,000 2018 $2,711,000 2019 $2,992,000 1,499,000 1,623,000 1,768,000 2,100,000 544,000 844,000 943,000 892,000 477,000 493,000 525,000 522,000 67,000 351,000 418,000 370,000 20,100 105,300 125,400 111,000 $46,900 $245,700 $292,600 $259,000 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $18,000. The company uses a periodic inventory system. P7-6 Part 2 2. Compute the gross profit percentage for each year before the correction and after the correction. Note: Round your answers to the nearest whole percent.

[The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $2,043,000 2017 $2,467,000 2018 $2,711,000 2019 $2,992,000 1,499,000 1,623,000 1,768,000 2,100,000 544,000 844,000 943,000 892,000 477,000 493,000 525,000 522,000 67,000 351,000 418,000 370,000 20,100 105,300 125,400 111,000 $46,900 $245,700 $292,600 $259,000 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $18,000. The company uses a periodic inventory system. P7-6 Part 2 2. Compute the gross profit percentage for each year before the correction and after the correction. Note: Round your answers to the nearest whole percent.

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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