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 $70,000, and Year 2 ending inventory is overstated by $40,000 For Year Ended December 31 Year 1 Year 2 Year 3 (a) Cost of goods sold $ 745,000 $ 975,000 $ 810,000 (b) Net income 288,000 295,000 270,000 (c) Total current assets 1,267,000 1,380,000 1,250,000 (d) Total equity 1,487,000 1,600,000 1,265,000 Required: 1. For each key financial statement figure-la). (6). (d, 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? Answer is not complete. Complete this question by entering your answers in the tabs below. 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 Rold S 810,000 Reported amount Adjustments for $ 745,000S (70,000) 12/31/Year 1 error 12/31/Year 2 error 975,000 70,000 40,000 (40,000) Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (c) 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 Hold: Reported amount $ 745,000 $ 975,000 $ 810,000 Adjustments for 12/31/Year 1 error (70,000) 70,000 12/31/Year 2 error 40,000 (40,000) Corrected amount $ 675,000 $ 1,085,000 $ 770,000 Net income: Reported amount $ 288,000 $ 295,000 $ 270,000 Adjustments for: 12/31/Year 1 error 70,000 (70.000) 12/31/Year 2 error 40,000 (40,000) Corrected amount $ 358,000 $ 265,000 $ 230,000 Total current Reported amount Adjustments for 12/31/Year 1 error 12/31/Year 2 error $ 1.407,000 $ 1,600,000 $ 1.265,000 70,000 (70,000) 40,000 (40,000) $ 1,477,000 $ 1,570,000 $ 1,225,000 Corrected amount Equity Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error $ 1.267.000 $ 1,380,000 $ 1.250.000 70,000 (70,000) 40,000 (40,000) $ 1,337,000 $ 1,350,000 $ 1,210,000 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 $70,000, and Year 2 ending inventory is overstated by $40,000 For Year Ended December 31 Year 1 Year 2 Year 3 (a) Cost of goods sold $ 745,000 5 975,000 $ 310,000 (6) Net income 288,000 295,000 270,000 (c) Total current assets 1,267,000 1,380,000 1,250,000 (d) Total equity 1,407,000 1,600,000 1,265,000 Required: 1. For each key financial statement figure-la). (6).(d, and () 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? Answer is not complete 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? Emrin total net income of three