Whispering Winds Corp. reported these income statement data for a 2-year period 2017 2016 Sales revenue Beginning inventory Cost of goods purchased Cost of goods available for sale Less: Ending inventory Cost of goods sold Gross profit $232,500 37,310 209,680 246,990 49,870 $221,640 32,220 172,560 204,780 37,310 167,470 $54,170 197,120 167.7 $35,380 Whispering Winds Corp. uses a periodic inventory system. The inventories at January 1, 2016, and December 31, 2017, are correct. However, the ending inventory at December 31, 2016, is overstated by $7,420