Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,000,000 800,000 $ 200,000 2016 $1,400,000 1,106,000 $ 294,000 2017 $1,500,000 1,215,000 $ 285,000 2018 $2,000,000 1,600,000 $ 400,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $10,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. (Rou to the nearest whole percent.) 1. 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. Does the pattern of gross profit percentages lend confidence to your corrected amounts? 2015 2016 2018 2017 % Before Correction % % % Reg 1 Reg 2A Reg 2B After Correction % % % % Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY Income Statements (Corrected) 2015 2016 2017 2018 Net Sales Cost of Goods Sold Gross Profit