Accounting Statements and finding errors: Uncle Bill was concerned about the operating results for 2017 and asked his recently hired accountant, “If sales increased in 2017, why was net income less than half of what it was in 2016?” In February of 2018, Uncle Bill got his answer: “The ending inventory reported in 2016 was overstated by $30,550 for merchandise that we were holding on consignment on behalf of Kirk’s Servistar. We still keep some of their appliances in stock, but the value of these items was not included in the 2017 inventory count because we don’t own them.”
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