Empire State Carpets's books show the following data. In early 2020, auditors found that the ending merchandise inventory for 2017 was understated by $8,000 and that the ending merchandise inventory for 2019 was overstated by $9,000. The ending merchandise inventory at December 31, 2018, was correct.

Requirements
1. Prepare corrected income statements for the three years.
2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement.
3. Compute the inventory turnover and days' sales in inventory using the corrected income statements for the three years. (Round all numbers to two decimals.)

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2019 2018 2017 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income $ 176,000 $ 220,000 $ 162,000 $ 29,000 $ 46,000 132,000 90,000 119,000 22,000 76,000 154,000 122,000 32,000 29,000 122,000 98,000 72,000 $ 26,000 97,000 93,000 83,000 48,000 $ 35,000 65,000 38,000 $ 27,000