7 Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $64,000 and Year 2 ending inventory is overstated by $34,000. 3.58 points For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 $ 739,000 282,000 1,261,000 1,401,000 Year 2 $ 969,000 289,000 1,374,000 1,594,000 Year 3 $ 804,000 264,000 1,244,000 1,259,000 Required: 1. For each key financial statement figure-(a), (6), (9, and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Year 1 Year 2 Year 3 $ 739,000 (64,000) 0 $ 675,000 $ 969,000s $ 804,000 64,000 0 34,000 ( (34,000) $ 1,067,000 $ 770,000 Is 282,000$ 289,000 $ $ 264,000 64,000 (64,000) 0 0 (34,000) 34,000 $ 346,000 $ 191,000 $ 298,000 Cost of goods sold: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Net income: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Total current assets: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Equity: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 1,261,000$ 1,374,000$ 1,244,000 64,000 64,000 0 0 (34,000) 0 $ 1,325,000 $ 1,404,000 $ 1,244,000 $ $ 1,401,000 $ 1,594,000$ 1,244,000 X $ 64,000 (64,000) 0 0 (34,000) 34,000 $ 1,465,000 $ 1,496,000 $ 1,278,000