Exercise 8.8 (Algo) Effects of Errors in Inventory Valuation (LO 8-5) Branson Electric prepared the following condensed income statements for two successive years. 2021 2020 Sales $5,000,000 $ 4,950,000 Cost of goods sold 1,300,000 950,000 Gross profit on sales $ 3,700,000 $4,000,000 Operating expenses 450,000 300,000 Net income $3,250,000 $3,700,000 At the end of 2020 (right-hand column), the inventory was understated by $23,000, but the error was not discovered until after the accounts had been closed and financial statements prepared at the end of 2021. The balance sheets for the two years showed owner's equity of $490,000 at the end of 2020 and $535,000 at the end of 2021. (Branson is organized as a sole proprietorship and does not incur income taxes expense.) a. Compute the corrected net income figures for 2020 and 2021. b. Compute the gross profit amounts and the gross profit percentages for each year on the basis of corrected data (Round "Gross profit percentage" to 2 decimal places (i.e. 1234 should be entered as 12.34)) 2021 2020 a b Corrected net income Gross profit amount Gross profit percentago %