Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales: Cost of Goods Sold Gross Profit 2018 $2,750,000 1,512,500 2019 $ 3,150,000 1,701,000 2020 $ 3,250,000 1,820,000 $ 1,237,500 $ 1,449,000 $ 1,430,000 2021 $ 3,750,000 2,062,500 $ 1,687,500 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $23,000. The inventory balance on December 31, 2020, 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 2-8. 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 1 Req 2A Req 28 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY < Prev 4 of 4 Next