Exercise 5-12 Analysis of inventory errors LO A2 Vibrant Company had $850,000 of sales in each of three consecutive years 2016-2018, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 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 2016 that caused its year-end 2016 inventory to appear on its statements as $230,000 rather than the correct $250,000, Required: 1. Determine the correct amount of the company's gross profit in each of the years 2016-2018. 2. 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 the years 2016-2018 ces Required 1 Required 2 Determine the correct amount of the company's gross profit in each of the years 2016-2018. VIBRANT COMPANY Comparative Income Statements 2016 2017 2018 3-year total Cost of goods sold Cost of goods sold Gross profit Required 2 > Required 1 Required 2 Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross years 2016-2018. VIBRANT COMPANY Comparative Income Statements 2016 2017 2018 3-year total Cost of goods sold Cost of goods sold Gross profit