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 $68,000 and Year 2 ending inventory is overstated by $38,000. 3.58 points For Year Ended December 31 Year 1 (a) Cost of goods sold (b) Net income $ 743,000 (c) Total current assets (d) Total equity eBook Required: 286,000 1,265,000 1,405,000 Year 2 $ 973,000 293,000 1,378,000 1,598,000 Year 3 $ 808,000 268,000 1,248,000 1,263,000 Print References 1. 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. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? 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.) 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 Year 1 Year 2 Year 3 < Required 1 Required 2 > What is the total error in combined net income for the three-year period resulting from the inventory errors? Error in total net income of three years