Analyzing and interpreting the effects of inventory errors

PA7-5 (Algo) (Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors [LO 7-S2] Partial income statements for Sherwood Company summarized for a four-year period show the following: An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $23,400. The inventory balance on December 31,2020 , was accurately stated. The company uses a periodic inventory system. 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 (d) before the correction and (b) after the correction, 2-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 reflect the correct amounts, after fixing the inventory error. 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory ertor 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 question by entering your answers in the tabs below. Compute the gfoss profit percentage 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. 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 question by entering your answers in the tabs below. Do the results lend confidence to your corrected amounts