of 3 ok nt 3 ence Required information [The following information applies to the questions displayed...

 

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of 3 ok nt 3 ence Required information [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 2017 2018 2019 $2,030,000 $2,468,000 $2,714,000 $2,983,000 1,498,000 1,622,000 2,098,000 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 1,763,000 63,000 2,0 532,000 846,000 885,000 483,000 496,000 527,000 49,000 350,000 358,000 14,700 105,000 107,400 $ 34,300 $ 245,000 $296,100 $ 250,600 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $15,000. The company uses a periodic inventory system. PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. 951,000 528,000 423,000 126,900 2018 2019 of 3 ok nt 3 ence Required information [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 2017 2018 2019 $2,030,000 $2,468,000 $2,714,000 $2,983,000 1,498,000 1,622,000 2,098,000 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 1,763,000 63,000 2,0 532,000 846,000 885,000 483,000 496,000 527,000 49,000 350,000 358,000 14,700 105,000 107,400 $ 34,300 $ 245,000 $296,100 $ 250,600 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $15,000. The company uses a periodic inventory system. PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. 951,000 528,000 423,000 126,900 2018 2019

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