Assume that Volleyball Pro Equipment had $960,000 of sales during each of three consecutive years,...
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Accounting
Assume that Volleyball Pro Equipment had $960,000 of sales during each of three consecutive years, and it purchased merchandise costing $440,000 during each of the years. It also maintained a $170,000 inventory from the beginning to the end of the three-year period. However, it made an error at the end of the first year, 2023, that caused its ending 2023 inventory to appear on its statements at $150,000 rather than the correct $170,000. Required: 1. Calculate the actual amount of the company's gross profit in each of the years. 2. Prepare a comparative income statement to show the effect of this error on the company's cost of goods sold and gross profit in 2023, 2024, and 2025
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