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 $60,000 and Year 2 ending inventory is overstated by $30,000. For Year Ended December 31 Year 1 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 2 $ 735,000 278,000 1,257,000 1,397,000 $ 965,000 Year 3 $ 800,000 285,000 1,370,000 260,000 1,240,000 1,590,000 1,255,000 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. Required 1 Required 2 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. (Amounts to be deducted must be entered with a minus sign.) Year 1 Year 2 Cost of goods sold: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 $ 0 $ Net income: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 $ 0 $ Total current assets: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 $ 0 $ Equity: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 $ 0 $ < Required 1 Year 3 Required 2 >