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HiI have some mistakes on this problem, I dont know how it effects the result. Can u explain? Thank you! The statements of earnings for

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HiI have some mistakes on this problem, I dont know how it effects the result. Can u explain? Thank you!

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The statements of earnings for Pruitt Companyr summarized for a fouryear period show the following (amounts in thousands of dollars): 2018 201? 2016 2015 Sales revenue $2,025 $3,350 $3,600 $3,835 Cost of sales 1,955 2,077 2,232 2563 Gross prot 970 1,273 1,368 1,312 Operating expenses 580 603 628 632 Pretax earnings 390 670 ?40 680 Income tax expense (40%) 156 268 296 272 Net earnings $ 234 $ 402 $ 444 $ 408 An audit revealed that in determining these amounts, the ending inventory for 2016 was understated by $40. Required: 1. Revise these statements of earnings to reflect the correct amounts. [Do not round intermediate calculations. Round the nal answers to the nearest dollar amount.) Sales revenue Cost of sales 2. Did the error aect the cumulative net earnings for the fouryear period? C) Not affected 0 Affected 3. What effect did the error have on the income tax expense for 2016 and 201?? {Do not round intermediate calculations. Round the nal answers to the nearest dollar amount.)

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