Problem 5-6A (Algo) Analysis of inventory errors LO A2 Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of Inventory, it had made the following errors: Year 1 ending inventory is understated by $60,000 and Year 2 ending inventory is overstated by $30,000 For Year Ended December Year 1 Year Year (a) Cost of goods sold 3 735,000 5 965,000 $ 800.000 (b) Net Income 278,000 285,000 260,000 (c) Total current assets 1,257,000 1,370,000 1,240,000 (d) Total equity 1,297,000 1,500,000 1,255,000 Required: 1. For each key financial statement figure-(a), (09.19. and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below