Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 12

In taking a physical inventory at the end of year 2015, Grant Company forgot to count certain units. Explain how this error affects the following: ( a ) 2015 cost of goods sold, ( b ) 2015 gross profit, ( c ) 2015 net income, ( d ) 2016 net income, ( e ) the combined two-year income, and ( f ) income for years after 2016.