Problem 5-6A Analysis of inventory errors LO A2 Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2016, is understated by $56,000, and inventory on December 31, 2017, is overstated by $20,000. $ For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity 2016 $ 615,000 230,000 1,255,000 1,387,000 2017 957,000 285,000 1,365,000 1,530,000 2018 $ 780,000 241,000 1,200,000 1,242,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Complete this questions by entering your answers in the below tabs. Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) 2016 2017 2018 Cost of goods sold: Reported amount Adjustments for: 12/31/2016 error 12/31/2017 error Corrected amount $ 0 $ 0 $ 0 Net income: Reported amount Adjustments for: 12/31/2016 error 12/31/2017 error Corrected amount $ 0 $ 0 $ 0 Total current assets: Reported amount Adjustments for: 12/31/2016 error 12/31/2017 error $ 0 $ 01 $ 0 Corrected amount Equity: Reported amount Adjustments for: 12/31/2016 error 12/31/2017 error Corrected amount $ o $ 0 $ 0 Problem 5-6A Analysis of inventory errors LO A2 Navajo Company's financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2016, is understated by $56,000, and inventory on December 31, 2017, is overstated by $20,000. For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity 2016 $ 615,000 230,000 1,255,000 1,387,000 2017 $ 957,000 285,000 1,365,000 1,530,000 2018 $ 780,000 241,000 1,200,000 1,242,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the error in total net income for the combined three-year period resulting from the inventory errors? Complete this questions by entering your answers in the below tabs. Required 1 Required 2 What is the error in total net income for the combined three-year period resulting from the inventory errors? Error in total net income of three years