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Navajo Company's year-end financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending Inventory is understated by $68,000 and Year 2 ending Inventory is overstated by $38,000. $ $ $ For Year Ended December 31 (a) Cost of goods sold (b) Net income (c) Total current assets (d) Total equity Year 1 743,629 286, eee 1,265,000 1,405,000 Year 2 973,000 293, eee 1,378, eee 1,598, eee Year 3 898,eee 268,000 1,248, see 1,263, eee Required: 1. For each key financial statement figure-(a), (D). (C), and (c) above-prepare a table to show the adjustments necessary to correct the reported amounts. 2. What is the total error in combined net income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each key financial statement figure-(a), (b), (c), and (c) above-prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.) Year 1 Year 3 Cost of goods sold Reported amount Adjustments for: Year 2 12/31/Year 1 error 12/31/Year 2 error s 0 s 0 s Corrected amount Net income Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error 0 s 0 Corrected amount Total current assets: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount $ 0 $ 0 S Equity: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount s 0 s 0 $ Required 1 Required 2 > Required: 1. For each key financial statement figure-(a), (b), (0, and (d) above-prepare a table to show the adjustments necessary to correct the reported amounts 2. What is the total error in combined net Income for the three-year period resulting from the inventory errors? Complete this question by entering your answers in the tabs below. Required 1 Required 2 What is the error in total net income for the combined three-year period resulting from the inventory errors? Error in total net income of three years

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