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 $63,000, and inventory on December 31, 2016, is overstated by $33,000.

For Year Ended December 31		2015		2016		2017
(a)	Cost of goods sold	$	738,000	$	968,000	$	803,000
(b)	Net income		281,000		288,000		263,000
(c)	Total current assets		1,260,000		1,373,000		1,243,000
(d)	Total equity		1,400,000		1,593,000		1,258,000

Required:

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.)

2. What is the error in total net income for the combined three-year period resulting from the inventory errors?