Condensed income statements for Newlon Company are shown below for two years.
|
2010 |
2009 |
|
| Net sales |
$75,000 |
$90,000 |
| Cost of goods sold |
45,000 |
54,000 |
| Gross margin |
$30,000 |
$36,000 |
| Operating expenses |
15,000 |
15,000 |
| Income before income taxes |
$15,000 |
$21,000 |
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 $13,000
