Navajo Companys 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, 2015, is understated by $69,000, and inventory on December 31, 2016, is overstated by $39,000.

For Year Ended December 31		2015		2016		2017
(a)	Cost of goods sold	$	744,000	$	974,000	$	809,000
(b)	Net income		287,000		294,000		269,000
(c)	Total current assets		1,266,000		1,379,000		1,249,000
(d)	Total equity		1,406,000		1,599,000		1,264,000

1. For each key financial statement figure(a), (b), (c), and (d) belowprepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.)

Cost of Goods Sold:		2015	2016	2017
Reported amount
Adjustments for:	12/31/2015 error
	12/31/2016 error
Corrected amount

Net Income

		2015	2016	2017
Reported amount
Adjustments for:	12/31/2015 error
	12/31/2016 error
Corrected amount

Total Current Assets		2015	2016	2017
Reported amount
Adjustments for:	12/31/2015 error
	12/31/2016 error
Corrected amount

Equity

		2015	2016	2017
Reported amount
Adjustments for:	12/31/2015 error
	12/31/2016 error
Corrected amount

2. 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