Required information (The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a four-year period shows the following: Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (40%) Net income 2016 $ 2,042,000 1,494,000 548,000 473,000 75,000 30,000 $ 45,000 2017 $ 2,463,000 1,607,000 856,000 512,000 344,000 137,600 $ 206,400 2018 $ 2,700,000 1,772,000 928,000 536,000 392,000 156,800 $ 235,200 2019 $ 2,989,000 2,103,000 886,000 535,000 351,000 140,400 $ 210,600 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $12,000. The company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (40%) Net income