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 $61,000 and Year 2 ending inventory is overstated by $31,000.

For Year Ended December 31	Year 1	Year 2	Year 3
(a) Cost of goods sold	$ 736,000	$ 966,000	$ 801,000
(b) Net income	279,000	286,000	261,000
(c) Total current assets	1,258,000	1,371,000	1,241,000
(d) Total equity	1,398,000	1,591,000	1,256,000

Required:

1. For each key financial statement figure(a), (b), (c), and (d) aboveprepare 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?