CH 6 Mastery Assessment 3rd Attempt 6 Help Save& Exit Subm Required information 14 The following information applies to the questions displayed below. Badger Company had $1,020,000 of sales in each of three consecutive years 2012- 2014, and it purchased merchandise costing $560,000 in each of those years. It also maintained a $320,000 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 2012 that caused its year-end 2012 inventory to appear on its statements as $300,000 rather than the correct $320,000. 13 points 2 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 the years 2012-2014. BADGER COMPANY 2012 2013 2014 Cost of goods sold KPrev 14 of 23 Next