# Question

Black and Blue, Inc., overlooked \$100,000 of inventory at the end of the current year because it was stored temporarily in a warehouse owned by another company. Before discovering this error, the company’s income statement showed the following:
Sales . . . . . . . . . . . . . . . . . . . . . . \$990,000
Cost of goods sold . . . . . . . . . . (560,000)
Gross profit . . . . . . . . . . . . . . . \$430,000
Restate these figures to reflect the inclusion of the overlooked inventory.

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