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 $66,000, and Year 2 ending inventory is overstated by $36.000. $ $ $ For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 741,000 284,000 1,263,000 1,403,000 Year 2 971, 000 291,000 1,376,000 1,596,800 Year 3 806,000 266,000 1,246,000 1,261,000 Required: 1. 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. 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 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 $ 741,000 $ 971,000 S 806,000 Year 1 Year 2 Year 3 Cost of goods sold: Reported amount Adjustments for: $ 741,000 $ 971,000 $ 806,000 12/31/Year 1 error 12/31/Year 2 error $ 741,000 $ 971,000 $ 806,000 Corrected amount Net income: Reported amount Adjustments for: $ 284,000 $ 291,000 $ 266,000 12/31/Year 1 error 12/31/Year 2 error $ 284,000 $ 291,000 $ 266,000 Corrected amount Total current assets: Reported amount Adjustments for $ 1,263,000 $ 1,376,000 $ 1,246,000 12/31/Year 1 error 12/31/Year 2 error $ 1,263,000 $ 1,376,000 $ 1,246,000 Corrected amount Equity: Reported amount Adjustments for: $ 1,403,000 $ 1,596,000 $ 1,261,000 12/31/Year 1 error 12/31/Year 2 error Corrected amount $ 1,403,000 $ 1,596,000 $ 1,261,000 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 $66,000, and Year 2 ending inventory is overstated by $36,000. $ $ For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 741, eee 284, eee 1,263, eee 1,483, eee Year 2 971,800 291,600 1,376,000 1,596,200 Year 3 886,080 266,080 1,246, eee ,261, eee 1 Required: 1. 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. 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
