Problem

Sweet Acacia Industries reported these income statement data for a 2-year period.

2017 2016

Sales revenue $273,100 $229,080

Beginning inventory 41,670 35,060

Cost of goods purchased 202,010 178,690

Cost of goods available for sale 243,680 213,750

Less: Ending inventory 55,860 41,670

Cost of goods sold 187,820 172,080

Gross profit $85,280 $57,000

Sweet Acacia Industries uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct. However, the ending inventory at December 31, 2016, is overstated by $8,720.

1. Prepare correct income statement data for the 2 years.

2016 2017

Sales

Cost of goods sold

Beginning inventory

Cost of goods purchased

Cost of goods available for sale

Less:Ending Inventory

Cost of goods sold

Gross profit.