PA7-5 (Supplement 7C) Analyzing and Interpreting the Effects of Inventory Errors [LO7-S3] Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2017 $2,300,000 1,640,000 2018 $2,700,000 1,900,000 2019 $2,800,000 2,010,000 2020 $3,300,000 2,340,000 660,000 800,000 790,000 960,000 An audit revealed that in determining these amounts, the ending inventory for 2018 was overstated by $26,000. The inventory balance on December 31, 2019, 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. Net sales Cost of goods sold Gross profit Sherwood Company Income Statements (Corrected) 2017 2018 2019 2020 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) 2017 2018 2019 2020