5 ! Part 1 of 3 Required Information P7-9 (Algo) Analyzing and Interpreting the Effects of Inventory Errors L07-7 (The following information applies to the questions displayed below.] The income statement for Pruitt Company summarized for a four-year period shows the following: - 1 points Skipped Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income 2016 $ 2,034,000 1,496,000 538,000 477,000 61,000 18,300 42,700 2017 $ 2,457,000 1,626,000 831,000 504,000 327,000 98,100 $ 228,900 2018 $ 2,702,000 1,765,000 937,000 519,000 418,000 125,400 $ 292,600 2019 $ 2,980,000 2,113,000 867,000 538,000 329,000 98,700 $ 230,300 eBook Print An audit revealed that in determining these amounts, the ending Inventory for 2017 was overstated by $15,000. The company uses a periodic Inventory system. References P7-9 Part 1 Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net income