Return to question Partial income statements for Sherwood Company summarized for a four year period show the following: Net Sales Cost of Goods Sold Gross Profit 2018 $ 2,500,000 1,500,000 $ 1,000,000 2019 $ 2,900,000 1,711,000 $ 1,189,000 2020 $ 3,000,000 1,830,000 $ 1,170,000 2021 $ 3,500,000 2,100,000 $ 1.400,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $22,000. 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 28 ints after fixing the inventory error Answer is complete but not entirely correct. Retum Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Restate the partial income statements to reflect the correct amounts, after fixing the inventory aror. SHERWOOD COMPANY Income Statements (Corrected) 2018 2019 2020 2021 Net Sales $ 2,500,000 $2,900,000 $3,000,000 $3,500,000 Cost of Goods Sold 1,500,000 1,711,000 1,830,000 2.100,000 Gross Profit $ 1,000 $ 189,000 $ 1,170,000 $1,400,000 Req2A >