PA7-5 (Supplement 7B) Analyzing and Interpreting the Effects of Inventory Errors (LO 7-S2) Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold 2015 $1,780, eee 1,241,000 $ 459,000 2016 $2,100,000 1,512,000 $588, eee 2017 52,200,000 1,628,000 $572,000 2018 $2,7ee, eee 1,971,000 $ 729,000 Gross Profit An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $17,000. The Inventory balance on December 31, 2017, was accurately stated. The company uses a periodic Inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error 2-0. Compute the gross profit perceritage for each year (a) before the correction and after the correction 2 b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 20 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error SHERWOOD COMPANY Income Statements Corrected) 2015 2016 2017 2018 Nel Sales Cost of Goods Sold Cross Pro Ren ho Reg 2A >