#5 Q7

Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2016, is understated by $63,000, and inventory on December 31, 2017, is overstated by $33,000 For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity 2016 $738,000968, 281,000 2017 968,000803, 288,000 2018 1,260,000 1,400,000 1,373,000 1,593,000 263,000 1,243,0e0 1,258,000 Required 1. For each key financial statement figure-(a), (b), (, and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts 2. What is the error in total net income for the combined three-year period resulting from the inventory errors