Exercise $6-11$ Analysis of inventory errors LO$5,9$

Assume that Volleyball Pro Equipment had $$850,000$ of sales during each of three consecutive years, and it purchased merchandise costing $$550,000$ during each of the years. It also maintained a $$225,000$ inventory from the beginning to the end of the three$-$year period. However, it made an error at the end of the first year, $2023,$ that caused its ending $2023$ inventory to appear on its statements at $$205,000$ rather than the correct $$225,000.$

Required:

$1.$ Calculate the actual amount of the company$$s gross profit in each of the years.

$2.$ Prepare a comparative income statement to show the effect of this error on the company$$s cost of goods sold and gross profit in $2023,2024,$ and $2025.$