The following information is presented for Sarasota Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory.

The following information is presented for Sarasota Corporation. The net income figures were computed without knowledge of the errors in ending inventory. Assume that there was no error in the 2016 ending inventory Net Income Error in Ending Year per Books 2017 2018 2019 2020 2021 $154,000 Overstated $22,400 88,000 Overstated 33,500 119,000 No error 236,000 Understated 7,200 100,000 Understated 15,500 Prepare a worksheet to show the adjusted net income figure for each year from 2017 to 2021 after taking into account the inventory errors. Errors in Inventories Net Income Overstatement Understatement Overstatement Understatement Corrected Net Year Per Books 2017 $154,000 88,000 119,000 236,000 100,000 697,000 Jan. 1 Jan. 1 Dec. 31 Dec. 31 Income 22,400 2018 33,500 2019 2020 2021 15,50