Assignment 3: Ch7&9 instructions help Question 2 of 3) E Save & Exit Submit 2. 10.00 points The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands of dollars): Sales revenue Cost of sales 2018 2017 2016 2015 $3,425 $3,850 $4,100 $4,375 2,205 2,327 2,482 2.813 Gross profit Operating expenses 1,220 630 1,523 653 1.618 678 1.562 682 Prelax earnings Income tax expense (30%) 590 177 870940) 261 282 880 264 Net earings $ 413 $ 609 $ 658 S 616 An audit revealed that in determining these amounts, the ending inventory for 2016 was understated by $50 Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) PRUITT COMPANY Corrected Statement of Earnings 2018 2017 2016 2015 Sales revenue Cost of sales Gross profit Operating expenses Pretax earnings An audit revealed that in determining these amounts, the ending inventory for 2016 was understated by $50. Required: 1. Revise these statements of samnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) PRUITT COMPANY Corrected Statement of Earnings 2018 2017 2016 2015 Sales revenue Cost of sales Gross profit Operating expenses Prelax earnings Income tax expense Net eamings 2. Did the error affect the cumulative net earnings for the four-year period? Not allected Affected 3. What effect did the error have on the income tax expense for 2016 and 2017? (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) Income tax expense 2017 2016