Effects of an Error in Ending Inventory Waymire Company prepared the partial statements of earnings presented below for 2018 and 2017.

During 2019, Waymire's accountant discovered that ending inventory for 2017 had been overstated by \(\$ 8,200\).
\section*{Required:}
1. Prepare corrected statements of earnings for 2018 and 2017.
2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item. Indicate whether each error is an overstatement \((+)\) or an understatement \((-)\).
OBJECTIVE 8 Exercise

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Sales revenue Cost of goods sold: Beginning inventory Purchases Cost of goods available for sale Ending inventory Gross margin Operating expenses Income before taxes 2018 $ 538,200 2017 $ 483,700 $ 39,300 $ 32,100 343,200 292,700 382.500 324,800 (46,800) 335,700 (39,300) 285.500 202,500 (167,200) $ 35,300 198,200 (151,600) $ 46,600