How to get the answer for the question as attached? Answers are attached as well.

PART B For the year ended December 31 Year 1 Year 2 Year 3 Cost of goods sold $81,000 $78,500 $79,500 Net income......... . . . . . . . . . 16,000 33,500 18,500 Total current assets 149,000 167,500 110,000 Equity . . ...... 281,000 297,500 304,000 QUESTION 2 Topics covered: Warranties, contingent liabilities, inventory, and financial analysis.The City Store reported the following amounts on its nancial statements for Year 1, Year 2, and Year 3: For the year ended December 31 Year 1 Year 2 Year 3 Cost of goods sold ............................. $75,000 $87,000 $77,000 Net income ......................................... 22,000 25,000 21,000 Total current assets ............................ 155,000 165,000 110,000 Equity ................................................ 287,000 295,000 304,000 It was discovered early in Year 4 that the ending inventory on December 31, Year 1 was overstated by $6,000, and the ending inventory on December 31, Year 2 was understated by $2,500. The ending inventory on December 31, Year 3 was correct. Required: Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years Year 1, Year 2, and Year 3