Question 2013 Save & Exit Sum 2. 4.00 points The owners of Hexagon Health Foods are offering the business for sale. The partial income statements of the business for the three years of its existence are summarized below. Net sales Cost of goods sold Gross profton sales Gross profit rate 2013 2012 2011 $8.750.000 $8,400,000 $8.200,000 4,812.500 4,872,000 4800,000 53.907.500 $9.528.000 $3,400,000 In negotiations with prospective buyers of the business, the owners of Hexagon are calling attention to the rising trends of the gross profit and the gross profit rate as very favorable elements. Assume that you are retained by a prospective purchaser of the business to make an investigation of the fairness and reliability of the entity's accounting records and financial statements. You find everything in order except for the following: (1) An arithmetic error in the computation of inventory at the end of 2011 had caused a $400,000 understatement in that inventory, and (2) a duplication of figures in the computation of inventory at the end of 2013 had caused an overstatement of $817,500 in that inventory. The company uses the periodic inventory system, and these errors had not been brought to light prior to your investigation. - Prepare a revised three-year partial income statement summary. (Input all amounts in positive values. Round your rate answers to the nearest whole number. Omit the "$" and "%" signs in your response.) 2013 2012 2011 (Click to select (Click to select) (Click to select (Click to select References Worksheet Difficulty Easy Leaming Objective Explain the effects on the income statement of errors in inventory valuation 2020