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

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

2. Compute the gross profit percentage for each year before the correction and after the correction. (Round your answers to the nearest whole percent.)

Nuoro er Seven - Required Saved 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 (354) Net income 2016 $ 2,033,000 1,505,000 528,000 473,000 55,000 19,250 $ 35,750 2017 $ 2,469,000 1,608,000 861,000 503,000 358,000 125,300 $ 232,700 2018 $ 2,704,000 1,782,000 922,000 522,000 400,000 140,000 $ 260,000 2019 $ 2,990,000 2,110,000 880,000 534,000 346,000 121,100 $ 224,900 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $23,000. The company uses a periodic inventory system. ired: pare the income statements to reflect the correct amounts, taking into consideration the inventory error. PRUITT COMPANY Income Statement $ 260,000 $ 224,900 An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated b company uses a periodic inventory system. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory err PRUITT COMPANY 2019 $ Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (35%) Net income Income Statement For the Four-Year Period 2016 2017 2018 2,033,000 $ 2,469,000 $ 2,704,000 1,505,000 528,000 473,000 503,000 522,000 55,000 19,250 $ 35,750 2,990,000 2,110,000 880,000 534,000 346,000 121,100 224,900 $ Pretax income Income tax expense (35%) Net income 475,000 55,000 19,250 35,750 503,000 358,000 125,300 232,700 $ $ $ ok An audit revealed that in determining these amounts, the ending inventory company uses a periodic inventory system. nt ences 2. Compute the gross profit percentage for each year before the correction and nearest whole percent.) 2016 2017 2018 2019 % % % % Before correction After correction % % % %