The City Store reported the following amounts on their financial statements for 2015, 2016, and 2017: It was discovered early in 2015 that the ending inventory on December 31, 2015, was overstated by $6,000 and the ending inventory on December 31, 2016, was understated by $2,500. The ending inventory on December 31, 2017, was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years 2015, 2016, and 2017.

Question

The City Store reported the following amounts on their financial statements for 2015, 2016, and 2017:  It was discovered early in 2015 that the ending inventory on December 31, 2015, was overstated by $6,000 and the ending inventory on December 31, 2016, was understated by $2,500. The ending inventory on December 31, 2017, was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years 2015, 2016, and 2017.

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The Answer of The City Store reported the following amounts on their financial statements for 2015, 2016, and 2017:  It was discovered early in 2015 that the ending inventory on December 31, 2015, was overstated by $6,000 and the ending inventory on December 31, 2016, was understated by $2,500. The ending inventory on December 31, 2017, was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years 2015, 2016, and 2017.

The City Store Reported the Following Amounts on Their Financial