Sales Cost of goods sold Gross profit Operating expenses Net income (ignoring income taxes) 432,960 418,880 323,680) (288 320 S 109,280 S 130,560 182 960) (75 760 5 26,320 54,800 about the operating results for 2017 and asked his recently hired accountant. 1t saes increased in 2017, wfy was net ncome less tnan haitr of what t was in 2016 Uncke Bal vas concemed February of 2018, Uncle Bill got his answer "The ending inventory reported in 2016 was overstated by $18,800 for merchandise that we were holding on consignment on behaif of Kirk's Se We sbli keep some of their applances im stock, but the value of these items was not included in the 2017 inventory count because we don't own them." Required: a. Recast the 2016 and 2017 income statements to take into account the correction of the 2016 ending inventory erro 20172016 432.960418.880 23 680 Cost of goods sold Gross profe Operating expenses ncome taes b-1. Caiculate the combined net income for 2016 and 2017 before and after the cormection of the error b-1. Calculate the combined net income for 2016 and 2017 before and after the correction of the error Combined Net Income Before correction of error After correction of error Total 2017 2016 b-2. The error was corrected in 2017 before it was actually discovered in 2018 O True O False c. Is there any effect on net income and stockholders' equity in 2018 due to the error? O Yes References eBook & Resources Worksheet ulty 3 Haro Problem 5-36 Effects of inventory errors LO 7 ezto.mheduation.com/hm.tpx b-1. Calculate the combined net income for 2016 and 2017 before and after the correction of the e 2017 2016 Combined Net Income Total Before correction of error After correction of error b-2. The error was corrected in 2017 before it was actually discovered in 2018 O True O False c. Is there any effect on net income and stockholders' equity in 2018 due to the error? O Yes O No References eBook & Resources Worksheet Dmiculty a Hard Problem 5-36 Effects of inventory errors LO 7 Learning alanc