analyzing and interpreting the effects of inventory errors

PA7-5 (Algo) (Supplement 78) Analyzing and Interpreting the Effects of Inventory Errors [LO 7-S2] Partial income statements for Sherwood Company summarized for a fout-year period show the following: An auda revealed that in determining these amounts, the ending inventory for 2019 was overstated by $23800. The inwentory balance on December 31, 2020, was accurately stated. The company uses a periodic imventory systom. -Required: 1. Restate the partial income statements to roffect the cocrect amounts, after focing the inventory efror. 2-a. Compute the gross profis percentage for each year (d) before the correction and (c) after the correction 2b. Do the tentits ind confidence to your corrected amounts? 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. . Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Do the results lend confldence to your corrected amounts? Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts? Complete this questitn by entering your answers in the tabs below. Compute the gross profit percentoge for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Restate the partial income statements to refiect the correct amounts, after fixing the inventory error