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

points awarded

An audit revealed that in determining these amounts, the ending inventory for $2019$ was overstated by $$23,600.$ 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?

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Req $1$

Req $2A$

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