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 $64,000, and Year 2 ending inventory is overstated by $34.000 $ For Year Ended December 31 (a) cost of goods sold (b) Net Income (c) Total current assets (d) Total equity Year 1 739,000 $ 282,000 1,261,000 1,401,000 Year 2 969,000 $ 289,000 1,374,000 1,594.000 Year 3 884,000 264,000 1,244.000 1,259, eee Required: 1. For each key financial statement figure-(a) (b), (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? 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 incomo: 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 Required 2 > Error in total net income of three years