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

	2016	2017	2018	2019
Sales revenue	$2,042,000	$2,450,000	$2,708,000	$2,989,000
Cost of goods sold	1,492,000	1,615,000	1,770,000	2,094,000
Gross profit	550,000	835,000	938,000	895,000
Expenses	480,000	509,000	536,000	541,000
Pretax income	70,000	326,000	402,000	354,000
Income tax expense (30%)	21,000	97,800	120,600	106,200
Net income	$49,000	$228,200	$281,400	$247,800

An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $15,000. The company uses a periodic inventory system.

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

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