a r industrial supply shows the following financial statement data for 2012 2013 and 2014 prior to issuing the 2014 statements
Requirements
1. State whether each year’s net income before corrections is understated or overstated and indicate the amount of the understatement or overstatement.
2. Prepare corrected income statements for the three years.
3. What is the impact on the 2014 income statement if the 2012 inventory error is left uncorrected?
