Partial Income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2018 $ 2,050,000 1,414,500 2019 $ 2,450,000 1,666,000 2020 $ 635,500 $ 784,000 $ 2,550,000 1,785,000 $ 765,000 2021 $ 3,050,000 2,104,500 $ 945,500 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $20,200. 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-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 1 Req 2A Req 2B Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. Net Sales Cost of Goods Sold Gross Profit SHERWOOD COMPANY Income Statements (Corrected) 2018 2019 2020 2021 < Req 1 Req 2A > Partial Income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2018 $ 2,050,000 1,414,500 2019 $ 2,450,000 1,666,000 2020 2021 $ 2,550,000 1,785,000 $ 3,050,000 2,104,500 $ 635,500 $ 784,000 $ 765,000 $ 945,500 An audit revealed that in determining these amounts, the ending Inventory for 2019 was overstated by $20,200. 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-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 1 Req 2A Req 28 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.) Before Correction After Correction 2018 2019 2020 2021 % % % % % % % % < Req 1 Req 2B > Partial Income statements for Sherwood Company summarized for a four-year period show the following: 2021 Net Sales Cost of Goods Sold Gross Profit 2018 $ 2,050,000 1,414,500 2019 $ 2,450,000 1,666,000 2020 $ 635,500 $ 784,000 $ 2,550,000 1,785,000 $ 765,000 $ 3,050,000 2,104,500 $ 945,500 An audit revealed that in determining these amounts, the ending Inventory for 2019 was overstated by $20,200. 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-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 1 Req 2A Req 2B Do the results lend confidence to your corrected amounts? Yes No < Req2A Req 2B >