Coronado Watch Company reported the following income statement data for a 2-year period.

		2022		2021
Sales revenue		$ 260,000		$ 220,000
Cost of goods sold
Beginning inventory		41,000		34,000
Cost of goods purchased		207,000		180,000
Cost of goods available for sale		248,000		214,000
Ending inventory		50,000		41,000
Cost of goods sold		198,000		173,000
Gross profit		$ 62,000		$ 47,000

Coronado uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $ 7,000.

A) Prepare correct income statement data for the 2 years.

		2022		2021
Sales		$ enter a dollar amount		$ enter a dollar amount
Cost of goods sold
Beginning inventory		enter a dollar amount		enter a dollar amount
Cost of goods purchased		enter a dollar amount		enter a dollar amount
Cost of goods available for sale		enter a total amount for the first part		enter a total amount for the first part
Ending inventory		enter a dollar amount		enter a dollar amount
Cost of goods sold		enter a total of the two previous amounts		enter a total of the two previous amounts
Gross profit		$ enter a total amount		$ enter a total amount

B) What is the cumulative effect of the inventory error on total gross profit for the 2 years?

Cumulative effect of the inventory error $. enter the cumulative effect of the inventory error amount in dollars .