Compute the corrected operating income

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Reference no: EM13978877

Necessary Toys Company's condensed income statements for two years follow.

	2014	2013
Sales	$252,000	$210,000
Cost of goods sold	150,000	108,000
Gross margin	$102,000	$102,000
Operating expenses	60,000	60,000
Income before income taxes	$ 42,000	$ 42,000

After the end of 2014, the company discovered that an error had resulted in an $18,000 understatement of the 2013 ending inventory.

Compute the corrected operating income for 2013 and 2014

Reference no: EM13978877

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