The income statement for Pruitt Company summarized for a four$-$year period shows the following:

$\backslash$table$[[,2016,2017,2018,2019],[$Sales revenue,$$2,029,000,$$$2,470,000,$$$2,710,000,$$$2,988,000],[$Cost of goods sold,$1,503,000,1,610,000,1,770,000,2,109,000],[$Gross profit,$526,000,860,000,940,000,879,000],[$Expenses$,477,000,504,000,525,000,528,000],[$Pretax income,$49,000,356,000,415,000,351,000],[$Income tax expense $(30\%),14,700,106,800,124,500,105,300],[$Net income,$$34,300,$$$249,200,$$$290,500,$$$245,700]]$

An audit revealed that in determining these amounts, the ending inventory for $2017$ was overstated by $$22,000.$ The company uses a periodic inventory system.

P$7-6$ Part $1$

Required:

Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error.

$\backslash$table$[[$PRUITT COMPANY$],[$Income Statement$],[$For the Four$-$Year Period$],[,,2016,,2017,,2018,,2019],[$Sales revenue,$$,2,029,000,$$$,2,470,000,$$$,2,710,000,$$$,2,988,000],[$Cost of goods sold,,$1,503,000,,1,632,000,,,,],[$Gross profit,,$526,000,,838,000,,,,],[$Expenses$,,477,000,,504,000,,525,000,,528,000],[$Pretax income,,$49,000,,334,000,,,,],[$Income tax expense $(30\%),,14,700,,100,200,,,,],[$Net income,$$,34,300,$$$,233,800,,,,]]$