homework problems i Saved Help Save & Exit Submit Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2018 $ 2,000,000 1,400,000 $ 600,000 2019 $ 2,400,000 1,660,000 $ 740,000 2020 $ 2,500,000 1,770,000 $ 730,000 2821 $ 3,000,000 2,100,000 $ 900,000 An audit revealed that in determining these amounts, the ending inventory for 2019 was overstated by $20,000. The inventory balance on December 31, 2020, 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. Do the results lend confidence to your corrected amounts