EXercise 5-12 Analysis of inventory errors LO A2 [The following information applies to the questions displayed below.] Vibrant Company had $850,000 of sales in each of three consecutive years 20122014, and it purchased merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2012 that caused its year-end 2012 inventory to appear on its statements as $230,000 rather than the correct $250,000. References Section BreakExercise 5-12 Analysis of inventory errors LO A2 5.value: 10.00 pointsRequired information Exercise 5-12 Part 1 1. Determine the correct amount of the companys gross profit in each of the years 2012 2014. HintsReferenceseBook & Resources Hint #1 6.value: 10.00 pointsRequired information Exercise 5-12 Part 2 2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 20122014.