Help Save & Exit Check m Partial income statements for Sherwood Company summarized for a four-year period show the following: 2015 $2,300,000 2016 $2,700,000 1,782,000 S 2017 $2,800,000 2018 $3,300,000 2,211,000 Net Sales Cost of Goods Sold 1,541,000 759,000 1,904,000 Gross Profit $ 896,000 918,000 $1,089,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $23,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction. 2-b. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 28 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. SHERWOOD COMPANY Income Statements (Corrected) 2018 2017 2015 2016 Net Sales Cost of Goods Sold Gross Profit Pea 24 4 of 4 Next Reg 1 Req 2A Next 4 of 4 Drov