The City Store Reported the Following Amounts on Their Financial $\quad$

question 135

Essay

The City Store reported the following amounts on their financial statements for 2009,2010 and 2011:
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { For the year ended December 31 }$
$\begin{array} { | l | r | r | r | } \hline & 2009 &{ 2010 } & 2011 \\\hline \text { Cost of goods sold } & \$ 5,000 & \$ 87,000 & \$ 77,000 \\\hline \text { Net income } & 22,000 & 25,000 & 21,000 \\\hline \text { Total current assets } & 155,000 & 165,000 & 110,000 \\\hline \text { Equity } & 287,000 & 295,000 & 304,000 \\\hline\end{array}$
It was discovered early in 2012 that the ending inventory on December 31,2009 was overstated by $6,000 and the ending inventory on December 31,2010 was understated by $2,500.The ending inventory on December 31,2011 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 2009,2010 and 2011.

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Definitions:

Coccyx

The small, triangular bone at the base of the vertebral column in humans, formed from fused vertebrae and often referred to as the tailbone.

Atlas

The first cervical vertebra of the spine, supporting the globe of the head and forming the joint connecting the skull and spine.

Anterior Fontanel

The largest soft spot on a baby's skull, which allows for growth of the brain and skull during an infant's first year.

Mastoid Process

A bony prominence located behind the ear, part of the temporal bone, and serves as an attachment point for muscles.