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 (35%) Net income 2016 $ 2,030,000 1,499,000 531,000 481,000 50,000 17,500 $ 32,500 2017 $ 2,450,000 1,610,000 840,000 497,000 343,000 120,050 $ 222,950 2018 $ 2,714,000 1,770,000 944,000 526,000 418,000 146,300 $ 271,700 2019 $ 2,983,000 2,101,000 882,000 530,000 352,000 123,200 $ 228,800 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. Required: 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error. PRUITT COMPANY Income Statement For the Four-Year Period 2016 2017 2018 2019 Sales revenue Cost of goods sold Gross profit Expenses Pretax income Income tax expense (35%) Net income