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

	2014			2015			2016			2017
Net Sales	$	2,050,000		$	2,450,000		$	2,550,000		$	3,050,000
Cost of Goods Sold		1,040,000			1,300,000			1,410,000			1,740,000
Gross Profit		1,010,000			1,150,000			1,140,000			1,310,000

An audit revealed that in determining these amounts, the ending inventory for 2015 was overstated by $11,000. The inventory balance on December 31, 2016, 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-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.)

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

• No

• Yes