The statements of earnings for Pruitt Company summarized for a four- year period show the following (amounts in thousands of dollars):

An audit revealed that in determining these amounts, the ending inventory for 2013 was understated by $ 22.
Required:
1. Revise these statements of earnings to reflect the correct amounts.
2. Did the error affect the cumulative net earnings for the four- year period? Explain.
3. What effect did the error have on the income tax expense for 2013 and 2014?

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2015 $2,025 2014 2013 2012 Sales revenue Cost of sales Gross profit Operating expenses Pretax eamings Income tax expense (30%) Net eamings 520 490 30 9 $ 21 $2.450 $2,700 $2,975 1,505 1627 1782 2113 862 542 320 96 224 823 513 310 93 217 918 538 380 114 266