Navajo Company's financial statements show the following The company recently discovered
that in making physical counts of inventory. it had made the following errors. Year 1 ending
inventory is understated by $69,000, and Year 2 ending inventory is overstated by $39.000
Required: 1. For each key financial statement figure- ( (b). (b),(c), and ( ( b) below-prepore a
table to show the adjustments necessary to carrect the reported amounts 2. What is the total error
in combined net income for the three-yeor period reculting from the inventory errors?
For each key financial statement figure- (a),(b),(c), and (d) below-prepare a table to show the
adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered
with a minus sign.)
Complete this question by entering your answers in the tabs below. What is the error in total net
income for the combined three-year period resulting from the inventory errons