[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 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 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: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 亞
[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 $2,032,000 2017 $2,464,000 2018 $2,704,000 2019 $2,988,000 1,497,000 1,622,000 1,776,000 2,097,000 535,000 842,000 928,000 891,000 486,000 496,000 523,000 529,000 49,000 346,000 405,000 362,000 14,700 103,800 121,500 108,600 $34,300 $242,200 $283,500 $253,400 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: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 亞
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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![[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
$2,032,000
2017
$2,464,000
2018
$2,704,000
2019
$2,988,000
1,497,000
1,622,000
1,776,000
2,097,000
535,000
842,000
928,000
891,000
486,000
496,000
523,000
529,000
49,000
346,000
405,000
362,000
14,700
103,800
121,500
108,600
$34,300
$242,200
$283,500
$253,400
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:
1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error.
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Income tax expense (30%)
Net income
PRUITT COMPANY
Income Statement
For the Four-Year Period
2016
2017
2018
2019
亞](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6c5bc510-1811-4232-b6eb-1cb662924b25%2F99c3d6ce-1fd2-478b-ac16-bee64dd35401%2F60alm8u_processed.png&w=3840&q=75)
Transcribed Image Text:[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
$2,032,000
2017
$2,464,000
2018
$2,704,000
2019
$2,988,000
1,497,000
1,622,000
1,776,000
2,097,000
535,000
842,000
928,000
891,000
486,000
496,000
523,000
529,000
49,000
346,000
405,000
362,000
14,700
103,800
121,500
108,600
$34,300
$242,200
$283,500
$253,400
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:
1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error.
Sales revenue
Cost of goods sold
Gross profit
Expenses
Pretax income
Income tax expense (30%)
Net income
PRUITT COMPANY
Income Statement
For the Four-Year Period
2016
2017
2018
2019
亞
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