Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies Its Inventory costing method at the time of each sale, as if It uses a perpetual Inventory system. Assume its accounting records provided the following Information at the end of the annual accounting period, December 31. Units 2,950 Unit Cost $ 50 Transactions Beginning inventory, January 1 Transactions during the year: a. Purchase, January 30 b. Sale, March 14 ($199 each) c. Purchase, May 1 d. Sale, August 31 ($100 each) 62 2,750 (1,500) 1,250 (2,150) 89 1. Calculate the cost of goods sold and ending Inventory for Gladstone Company assuming it applies the LIFO cost method perpetually at the time of each sale. Cost of Goods Sold Ending Inventory Partial Income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,900,000 1,349,600 $ 551,00 2016 $2,300,000 1,610,000 $ 690,000 2017 $2,400,000 1,728,000 $ 672,200 2018 $2,900,000 2,059,00 $ 841,000 An audit revealed that in determining these amounts, the ending Inventory for 2016 was overstated by $19,000. The Inventory balance on December 31, 2017, was accurately stated. The company uses a periodic Inventory system. Required: 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. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY Income Statements (Corrected) 2015 2016 2017 2018 Net Sales Cost of Goods Sold Gross Profit