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1 The Finish Line Inc. reported the following items in its fiscal 2012 financial report...

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Accounting

1 The Finish Line Inc. reported the following items in its fiscal 2012 financial report ($ in millions). 2012 2011 Sales $1,443 $1,369 Cost of goods sold: Beginning Inventory 220 194 Purchase 983 915 Goods Available for Sale 1203 1109 Less: Ending Inventory 244 220 Cost of goods sold 959 889 Gross Profit 484 480 Assume that counting errors caused the ending inventory in 2011 to be understated by $50 and the ending inventory in 2012 to be overstated by $50. a. Compute the impact of these errors on cost of goods sold for the year ending Dec 31, 2011. What are the correct COGS and gross profit for the year? b. Compute the impact of these errors on cost of goods sold for the year ending Dec 31, 2012. What are the correct COGS and gross profit for the year?

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