Exercise $5-17($Algo$)$ Analyzing inventory errors LO A$2$

Vibrant Company had $$990,000$ of sales in each of Year $1,$ Year $2,$ and Year $3,$ and it purchased merchandise costing $$545,000$ in each

of those years. It also maintained a $$290,000$ 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 $$270,000$

rather than the correct $$290,000.$

Determine the correct amount of the company's gross profit in each of Year $1,$ Year $2,$ and Year $3.$

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 $3.$

Complete this question by entering your answers in the tabs below.

Required $2$

Determine the correct amount of the company's gross profit in each of Year $1,$ Year $2,$ and Year $3.$