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

[The following information applies to the questions displayed below) The income statement for Pruitt Company summarized for a four-year period shows the following: 2017 2016 2018 2019 2,028,000 2,460.000 2,712,000 2,983,000 Sales revenue Cost of goods sold 1,486,000 1,616,000 1,766,000 2,094,000 542,000 889,000 Gross profit 844,000 946,000 532,000 Expenses 470,000 495,000 525,000 414,000 364,000 Pretax income 72,000 349.000 127,400 25,200 122150 144,900 46,800 226,850 226,850 236.600 Net income An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $26,000. The company uses a periodic inventory system