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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: Year

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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: Year 1 ending inventory is understated by $59,000, and Year 2 ending inventory is overstated by $29,000 Tor Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year Year 2 734,000 $ 964,000 277.000 284,000 1,256,000 1,369,000 1,396,000 1,589,000 Year 3 799,000 259.000 1,239,000 1,254,000 Required: 1. For each key financial statement figure-(a), (b).(, and (c) below-prepare a table to show the adjustments necessary to correct the reported amounts 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Year 1 Year 2 Year 3 Cost of goods sold: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount Net income: Reported amount Adjustments for 12/31/Year 1 error 12/31/Year 2 error Corrected amount Total current assets: Reported amount Adjustments for 12/31/Year 1 error 12/31/Year 2 error Corrected amount Equity Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount 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: Year 1 ending inventory is understated by $59,000, and Year 2 ending inventory is overstated by $29,000. For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year $ 734,000 277,000 1,256,000 1,396,000 Year 2 Year 3 $ 964,000 $ 799,000 284,000 259,000 1,369,000 1,239,000 1,589,000 1,254,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (c) below-prepare a table to show the adjustments necessary to correc reported amounts 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 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

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