of 3 Required information (The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a four-year period shows the following: 2016 2017 2018 2019 Sales revenue $2,030,000 $2,468,000 $2,714,000 $2,983,000 Cost of goods sold 1,498,000 1,622,000 1,763,000 2,098,000 Gross profit 532,000 846,000 951,000 885,000 Expenses 483,000 496,000 528,000 527,000 Pretax income 49,000 350,000 423,000 358,000 Income tax expense (304) 14,700 105,000 126,900 107,400 Net income $ 34,300 $ 245,000 $ 296,100 $ 250, 600 ,000 2,0 ok nt ence An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $15,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. 2018 2019 PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (30%) Net Income