An audit revealed that in determining these amounts, the ending inventory for 2012 was overstated by $23,000. The inventory balance on December 31, 2013, was accurately stated. The company uses a periodic inventory system.

Required:

1.	Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

Partial income statements for Sherwood Company summarized for a four-year period show the following:

2-a.	Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.)

2011 2012 2013 2014 $2,150,000 $2,550,000 $2,650,000 $3,150,000 Net Sales Cost of Goods Sold 1,520,000 ,780,000 1,890,000 2,220,000 Gross Profit 630,000 770,000 760,000 930,000