Partial income statements for Sherwood Company summarized for a four$-$year period show the following:

An audit revealed that in determining these amounts, the ending inventory for $2019$ was overstated by $$21,800.$ The inventory balance

on December $31,2020,$ was accurately stated. The company uses a periodic inventory system.

Required:

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

$2-$a$.$ Compute the gross profit percentage for each year $($a$)$ before the correction and $($b$)$ after the correction.

$2-$b$.$ Do the results lend confidence to your corrected amounts?

Complete this question by entering your answers in the tabs below.

Req $2$B

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.Compute the gross profit percentage for each year $($a$)$ before the correction and $(b)$ after the correction. $($Round your answers

to the nearest whole nercent.$)$ Partial income statements for Sherwood Company summarized for a four$-$year period show the following:

An audit revealed that in determining these amounts, the ending inventory for $2019$ was overstated by $$21,800.$ The inventory balance

on December $31,2020,$ was accurately stated. The company uses a periodic inventory system.

Required:

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

$2-$a$.$ Compute the gross profit percentage for each year $($a$)$ before the correction and $($b$)$ after the correction.

$2-$b$.$ Do the results lend confidence to your corrected amounts?

Complete this question by entering your answers in the tabs below.

Req $2$B

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.