The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter all amounts in millions as provided in the question.) New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 2019

The accounting records of New Life Home Store show these data (in millions): (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2019 was understated by $6 million and that the ending inventory for 2020 was understated by $9 million. The ending inventory at December 31, 2021, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. (Enter all amounts in millions as provided in the question.) New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2021, 2020, and 2019 2021 2020 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses Net income 0000 2019

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 40E: Identify items missing in determining cost of goods sold For (a) through (e), identify the items...

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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
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Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
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