Condensed Income Statements for Newlon Company Are Shown Below for Two

question 44

Essay

Condensed income statements for Newlon Company are shown below for two years.
$\begin{array}{lcc}& {2010} & 2009 \\\text { Net sales } & \$ 75,000 & \$ 90,000 \\\text { Cost of goods sold }& 45,000 & 54,000\\\text { Gross margin } & \$ 30,000 & \$ 36,000 \\\text { Operating expenses } & 15,000 & 15,000 \\\text { Income before income taxes }&\$15,000&\$21,000\end{array}$ Compute the corrected income before income taxes for 2009 and 2010 assuming that the inventory as of the end of 2009 was mistakenly understated by $3,000.

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Definitions:

Confused And Agitated

A behavioral state where a person experiences a lack of clear thinking and increased restlessness, often due to underlying health issues or conditions.

Diagnosis Interpretation

The process of understanding and explaining the significance of diagnostic tests and results.

Joint Contractures

denotes the stiffness or restriction in the range of motion of a joint due to abnormal shortening of soft tissues, often resulting from prolonged immobility.

Passive Range Of Motion

A therapeutic exercise where joints are moved without the patient's effort to improve flexibility and decrease stiffness.