Sportsman Marine Supply reported the comparative income statement for the years ended September 30, 2017, and 2016, shown below:

During 2017, accountants for the company discovered that ending 2016 inventory was overstated by $5,000. Prepare the corrected comparative income statement for the two-year period, complete with a heading for the statement. What was the effect of the error on net income for the two years combined? Explain your answer.

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SPORTSMAN MARINE SUPPLY Income Statement For the Years Ended September 30, 2017 and 2016 2017 2016 Sales revenue $165,000 $146,000 Cost of goods sold: Beginning inventory Net purchases Co $16,500 91,000 107,500 23,600 $15,400 78,000 93,400 16,00 st of goods available for sale Ending inventory Cost of goods sold 83,900 81,100 40,000 $ 41,100 76,900 69,100 30,000 39,100 Gross margin Operating expenses Net income