Problem #4: Inventory Errors (10 points) In 2018 Ewetoo Distributing discovered an error in computing ending inventory at December 31, 2016. As a result of the error, the company overstated inventory in its balance sheet at December 31, 2016 by $525,000. Required: Presented below is information from the company's 2016 and 2017 GAAP financial statements. Determine the effects of the inventory error on the amounts as originally reported by Ewetoo Distributing. Enter the amounts for 2016 and 2017 as reported after the correction of the $525,000 overstatement of inventory at December 31, 2016. (8 points) 016 2017 Originally Reported Reported after Correction Originally Reported Reported after Correction Schedule of Cost of Goods Sold: Beginning Inventory $2,843,000 $3,298,000 Net Purchases including Freight 11,587,000 11,467,000 Cost of Goods Available for Sale 14,430,000 14,765,000 Ending Inventory Cost of Goods Sold $11,132,000 $11,899.000 Income Statement: Net Sales $21,684,000 $22,985,000 Cost of Goods Sold Gross Profit $10,552.000 $11,086,000 Gross Margin 48.66% 48.23% Briefly explain how the corrected information changes the assessment of the company's ability to manage its prices and product costs affected the percentage profit markup in each sales dollar in 2017 as compared to 2016. (2 points) b