P7-5 Analyzing and Interpreting the Effects of Inventory Errors L07-5 The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands of dollars) 2021 2020 2019 2018 Sales revenue $3.525 $3,950 $4,200 54.475 Cost of sales 2,255 2,377 2,532 2,863 Gronn profit 1,270 1,573 1,668 1,612 Operating expenses 640 563 680 692 Pretax onrnings 630 910 980 920 Income tax expenne (301) 109 273 276 Net earningo 441 $ 637 $ 686 $ 644 294 An audit revealed that in determining these amounts, the ending Inventory for 2019 was understated by $52 Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round Intermediate calculations. Round the final answers to the nearest dollar amount.) PRUIT COMPANY Corrected Statement of Earnings 2021 2020 2010 2010 Sales reverwe Cost of sales Gross profit Operating expenses Pretax eomingo Income tax expense Net eamings 2. What effect did the error have on the income tax expense for 2019 and 20207 (Do not round intermediate calculations. Round the final newers to the nearest dollar amount.) Income tax pense 2020 2010