oblem 5-6A Analysis of inventory errors LO A2 avajo Company's financial statements show the following. The company recently discovered that in making physical counts of ventory, it had made the following errors: Year 1 ending inventory is understated by $60,000, and Year 2 ending inventory is verstated by $30,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (o) below-prepare a table to show the adjustments necessary to correct th 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) below-prepare a table to show the adjustments necessary to Required: 1. For each key financial statement figure-(a), (b), (c), and (d) below-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. What is the error in total net income for the combined three-year period resulting from the inventory errors