The City Store Reported the Following Amounts on Their Financial $\text { For the Year Ended December } 31$

question 90

Essay

The City Store reported the following amounts on their financial statements for 2012, 2013, and 2014:
$\text { For the Year Ended December } 31$
$\begin{array}{|l|r|r|r|}\hline& 2012 & 2013 & 2014 \\\hline \text { Cost of goods sold } & \$ 75,000 & \$ 87,000 & \$ 77,000 \\\hline \text { Net income } & 22,000 & 25,000 & 21,000 \\\hline \text { Total current assets } & 155,000 & 165,000 & 110,000 \\\hline \text { Equity } & 287,000 & 295,000 & 304,000\\\hline\end{array}$ It was discovered early in 2015 that the ending inventory on December 31, 2012, was overstated by $6,000 and the ending inventory on December 31, 2013, was understated by $2,500. The ending inventory on December 31, 2014, 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 2012, 2013, and 2014.

---

Definitions:

Decimal Places

The positions or digits to the right of the decimal point in a decimal number, indicating fractions of a whole.

Divide

To Divide means to split or separate a number or quantity into two or more parts, often to distribute it evenly or to calculate a ratio or proportion.

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.