10 Inventory errors LO4 FMA Company reported the following income statement data 2016 $210000 32000 205000 40000 165000 45000 2017 Sales $250000 40000 242000 52 000 190000 60000 Beginning inventory Cost of goods available for sale Ending inventory Cost of goods sold Gross proft Inventory balances at 1 January 2016 and 31 December 2017 are correct. However, the ending inventory at 31 December 2016 is overstated by $5000 Required Prepare corrected data for 2016 and 2017, identify all accounts that were affected by the error and whether they were overstated or understated, and calculate the cumulative two-year effect of the inventory error on gross profit