Navajo Companys 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 $65,000 and Year 2 ending inventory is overstated by $35,000.

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 $65,000 and Year 2 ending Inventory is overstated by $35,000. Tor Year Ended December 31 Year 1 Year 2 Year 2 (a) Cont of goods sold $ 240,000 $ 970,000 $ 805,000 (b) Net income 283,000 290,000 265,000 (c) Total current assets 1,262,000 1,375,000 1,245,000 (d) Total equity 1,402,000 1,595,000 1,260,000 Required: 1. For each key financial statement figure-(a), (b). (a, 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? 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 Year 3 Cost of goods sold Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 S Not income Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31 Year 2 error Corrected amount $ os Total current assets: Reported amount Adjustment for 12/31/Year 1 error Adjustment for 12/31/Year 2 error Corrected amount $ 0 S OS 0 Equity Roported amount Adjustment for 12/31/Yoar 1 error Adjustment for 12/31/Year 2 error Corrected amount 5 $ OS 0 0 Required 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