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Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory

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Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $50,000, and inventory on December 31, 2018, is overstated by $20,000. For Year Ended December 31 2017 2018 2019 Cost of (a) goods $725,000 $ 955,000 $ 790,000 sold (b) Net income 268,000 275,000 250,000 Total (c) current 1,247,000 1,360,000 1,230,000 assets Total equity 1,387,000 1,580,000 1,245,000 (d) Required: 1. For each key financial statement figure-(a), (b), (c), and (c) below-complete the table to show the adjustments necessary to correct the reported amounts. 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? Required Required 1 2 For each key financial statement figure-(a), (b), (c), and (d) below-complete the table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Show less 2017 2018 2019 Cost of goods Reported amount $ 725,000 $ 955,000 $ 790,000 Adjustments 12/31/2017 for: (7,000) 12/31/2018 sold: error error $ 718,000 $ 955,000 $ 790,000 Corrected amount Net income: Reported amount Adjustments for: 12/31/2017 error 12/31/2018 error $ 0 $ 0 $ Corrected amount Total current assets: Reported amount Adjustments for: 12/31/2017 error 12/31/2018 error $ 0 $ 0 $ Corrected amount Equity: Reported amount Adjustments for: 12/31/2017 error 12/31/2018 error Corrected amount $ 0 $ 0 $ 0 Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2017, is understated by $50,000, and inventory on December 31, 2018, is overstated by $20,000. For Year Ended December 31 2017 2018 2019 Cost of (a) goods $ 725,000 $ 955,000 $ 790,000 sold Net 268,000 275,000 250,000 Total (c) current 1,247,000 1,360,000 1,230,000 assets Total 1,387,000 1,580,000 1,245,000 (b) income (d) equity Required: 1. For each key financial statement figure - (a), (b), (c), and (c) below-complete the table to show the adjustments necessary to correct the reported amounts. 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required Required What is the error in total net income for the combined three-year period resulting from the inventory errors? Error in total net income of three years

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