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Compute the corrected operating income

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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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