Navajo Company's year-end 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 $56,000 and Year 2 ending inventory is overstated by $20,000 For Year Ended December 31 (a) Cost of goods sold. (b) Net income (c) Total current assets (d) Total equity Year 1 $ 615,000 Year 2 $ 957,000 Year 3 $780,000 230,000 1,255,000 1,387,000 285,000 241,000 1,365,000 1,200,000 1,530,000 1,242,000 Required: 1. For each key financial statement figure-(a), (b). (c), and (d) above-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. For each key financial statement figure-(a), (b), (c), and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts. Note: Amounts to be deducted must be entered with a minus sign. Cost of goods sold Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Net income: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount Total current assets: Reported amount Year 1 Year 2 Year 3. $ $ 0 $ 0 S Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 $ 0 S 0 Equity Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error. Corrected amount S 0 0 $ 0 Navajo Company's year-end 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 $56,000 and Year 2 ending inventory is overstated by $20,000. For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Required: $ 957,000 Year 1 $ 615,000 230,000 1,255,000 1,387,000 Year 2 Year 3 $780,000 285,000 1,365,000 1,530,000 241,000 1,200,000 1,242,000 1. For each key financial statement figure-(a), (b). (c), and (d) above-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 pehod resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the total error in combined net income for the three-year period resulting from the inventory errors? Error in total net income of three years