IV. The SS Co. reported the following amounts on their financial 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

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Net income 22,000 25,000 21,000

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Total current assets 155,000 165,000 110,000

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Equity 287,000 295,000 304,000

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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. 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.

Fill in your answer in the following table: (24)

For the year ended December 31

Year 1 Year 2 Year 3

Cost of goods sold

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Net income

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Total current assets

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Equity

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