Tropical Tanning Supplys income statement data for the year ended December 31, 2012, follow. Sales Revenue ....

Question:

Tropical Tanning Supply’s income statement data for the year ended December 31, 2012, follow.
Sales Revenue .... $241,500
Cost of Goods Sold . 147,800
Gross Profit .... $ 93,700

Assume that the was accidentally overstated by $3,500. How would the inventory error affect Tropical Tanning Supply’s cost of goods sold and gross profit for the year ended December 31, 2013, if the error is not corrected in 2012?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...