5-1: Practice Exercises Flashcards | Quizl Course Hare A McGraw Conect Saved Help Save & Exit Submit 3 oints 2 00:44:48 Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Exercise 5-17 (Static) Analyzing inventory errors LO A2 Return to question Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of Year 1 that caused its Year 1 ending inventory to appear on its statements as $230,000 rather than the correct $250,000. 1. Determine the correct amount of the company's gross profit in each of Year 1 Year 2, and Year 3 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year 1, Year 2, and Year 3. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the correct amount of the company's gross profit in each of Year 1, Year 2, and Year 3. VIBRANT COMPANY Comparative Income Statements