7. 2.90 points 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, 2014. is understated by S55,000, and inventory on December 31, 2015, is overstated by S25,000. 2014 2015 For Year Ended December 31 2018 (a) Cost of goods sold S 730,000 S 960,000 S 795,000 (b) Net income 273,000 280,000 255,000 (c) Total current assets 1,252,000 1,385,000 1,235,000 (d) Total equity 1,392,000 1,585,000 1,250,000