Banta Tile & Marble Corporation reported the following comparative income statements for the years ended November 30, 2021 and 2020: 

Banta’s president and shareholders are thrilled by the company’s boost in sales and net income during 2021. Then the accountants for the company discover that ending 2020 inventory was understated by $8,500. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Banta really perform in 2021 as compared with 2020?

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1 2 3 4 5 A1 Banta Tile & Marble Corporation Income Statements For the Years Ended November 30, 2021 and 2020 Sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Ending inventory Cost of goods sold 6 7 8 9 10 11 Operating expenses 12 Net income 13 Gross profit 2021 $ 15,000 78,000 93,000 (18,500) $ 138,000 74,500 63,500 31,000 $ 32,500 2020 $ 14,500 66,000 80,500 (15,000) E $ 125,000 65,500 59,500 29,000 $ 30,500