Correction of Inventory Errors
Annual income for the Stoker Co. for the period 2004–2008 appears below. However, a review of the records for the company reveals inventory misstatements as listed. Calculate corrected net income for each year.
|
|
2004 |
2005 |
2006 |
2007 |
2008 |
|
Reported net income (loss) |
$18,000 |
$13,000 |
$2,000 |
$ (5,800) |
$16,000 |
|
Inventory overstatement, end of year |
|
5,500 |
|
|
3,600 |
|
Inventory understatement, end of year |
4,500 |
|
|
10,500 |
|