Condensed Income Statements for Newlon Company Are Shown Below for Two

Essay

Condensed income statements for Newlon Company are shown below for two years.
$\begin{array}{lcc}& {2010} & 2009 \\\text { Net sales } & \$ 75,000 & \$ 90,000 \\\text { Cost of goods sold }& 45,000 & 54,000\\\text { Gross margin } & \$ 30,000 & \$ 36,000 \\\text { Operating expenses } & 15,000 & 15,000 \\\text { Income before income taxes }&\$15,000&\$21,000\end{array}$ Compute the corrected income before income taxes for 2009 and 2010 assuming that the inventory as of the end of 2009 was mistakenly understated by $3,000.