Morton Watch Company reported the following income statement data for a 2 year period 2015 2016 sales revenue $260,000 $320,000 cost of goods sold Initial inventory 32,000 44 000 Cost of goods purchased 193,000 225,000 Cost of goods available for sale 225,000 269,000 running out of inventory 44 000...

a Corrected Income Statement Data for 2015 and 2016 2015 Sales Revenue 260000 Cost of Goods Sold Ini ...

Morton Watch Company reported the following income statement data for a 2-year period. 2015 2016 sales revenue

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Morton Watch Company reported the following income statement data for a 2-year period.

	2015	2016
sales revenue	$260,000	$320,000
cost of goods sold
Initial inventory	32,000	44.000
Cost of goods purchased	193,000	225,000
Cost of goods available for sale	225,000	269,000
running out of inventory	44.000	57,000
cost of goods sold	181.000	212,000
Gross profit	$79,000	$108,000

Morton uses a perpetual system and performs a periodic inventory at the end of the year. Beginning inventories as of January 1, 2015 and ending inventories as of December 31, 2016 are correct. However, the ending inventory of $44,000 as of December 31, 2015 was overstated by $5,000.