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correct mistakes The following information applies to the questions displayed below.j The...

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Accounting

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The following information applies to the questions displayed below.j The income statement for Pruitt Company summarized for a four-year period shows the following: 2016 2017 2018 2019 Sales revenue Cost of goods sold Gross proft Expenses Pretax income Income tax expense (30%) Net income $ 2,025,000 $2,450,000 $2,700,000 2,975,000 2.113,000 862,000 542,000 320,000 96,000 1,627,000 1.782,000 918,000 538,000 380,000 114,000 1,505,000 520,000 490,000 823,000 513,000 310,000 93,000 217,000 $266,000 224,000 30,000 9,000 21,000 $ An audit revealed that in determining these amounts, the ending inventory for 2017 was overstated by $18,000. The company uses a periodic inventory system. SAward: 0.06 out of 0.14 points Required 1. Prepare the income statements to reflect the correct amounts, taking into consideration the inventory error PRUITT COMPANY INCOME STATEMENT For the Four-Year Period 2016 2017 2018 2019 Sales revenue 2,025,0002,450,00027,000,0002,975,000 1,505,000 e 1,627,00 1,782,0 2,113,000 > Cost of goods sold Gross proft Expenses Pretax income Income tax expense 30%) Net income (18,000) 805,000 513,000 18,000 936,000 538,000 119,400 278,6000$ 224,000 520,000 862,000 490,000 542.000 3 9,000 87,600. 21,000.$ 204.4000$ $

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