Exercise $5-17($Algo$)$ Analyzing inventory errors LO A$2$

Vibrant Company had $$1,010,000$ of sales in each of Year $1,$ Year $2,$ and Year $3,$ and it purchased merchandise costing $$555,000$ in each of those years. It also maintained a $$310,000$ physical inventory from the beginning to the end of that three$-$year period. In accounting for inventory, it made an error at the end of Year $1$ that caused its Year $1$ ending inventory to appear on its statements as $$290,000$ rather than the correct $$310,000.$

Determine the correct amount of the company$$s gross profit in each of Year $1,$ Year $2,$ and Year $3.$

Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of Year $1,$ Year $2,$ and Year $3.$