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Problem 6-6A Analysis of inventory errors LO A2 Navajo Company's 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 $53,000, and Year 2 ending Inventory is overstated by $23,000. or Year Ended December 31 Year 1 Year 2 Year 3 (a) Cost of goods sold $ 728,000 $ 958,000 $ 793,000 (b) Net Income 271,000 278,000 253,000 (e) Total current assets 1,250,000 1,363,000 1,233,000 (d) Total equity 1,390,000 1,583,000 1,240,000 Required: 1. For each key financial statement figure-(a), (b), (c), and (c) below-prepare a table to show the adjustments necessary to come 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. For each key financial statement figure-(a), (b), (c), and (d) below-prepare a table to show the correct the reported amounts. (Amounts to be deducted must be entered with a minus) Year 1 Year 2 Cost of goods sold: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount Net income: Reported amount Adjustments for: 12/31/Year 1 error 12/31/Year 2 error Corrected amount Total current assets Reported amount Adjustments for 12/31/Year 1 error 12/31/Year 2 error Corrected amount Equity Reported amount Adjustments for 12/31/Year 1 error 12/31/Year 2 error Corrected amount Required 2 > Required 1 Required 2 What is the error in total net income for the combined three-year period resulting from the inventory errors? In total net income of three years

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