Columbia Video Sales Ltd. reported the following data. The shareholders are very happy with Columbia's steady increase in net income.

Auditors discovered that the ending inventory for 2018 was understated by \(\$ 1\) million and that the ending inventory for 2019 was also understated by \(\$ 1\) million. The ending inventory for 2020 was correct.

{Requirements}
1. Show corrected income statements for each of the three years.
2. How much did these assumed corrections add to or take away from Columbia's total net income over the three-year period? How did the corrections affect the trend of net income?
3. Will Columbia's shareholders still be happy with the company's trend of net income? Give a reason for your answer.

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1 A Columbia Video Sales Ltd. Income Statements for the Years Ended B C D E F G H 2 (Amounts in millions) 2020 2019 2018 3 Net sales revenue $ 36 $ 33 $ 30 4 Cost of goods sold: 5 Beginning inventory $6 $5 $4 6 Purchases 26 24 22 7 Goods available for sale 32 29 26 8 Less: Ending inventory (7) (6) (5) 9 Cost of goods sold 25 23 21 10 Gross profit 11 10 9 11 Total operating expenses 8 8 12 Net income $ 3 $ 2 $ 1 186 13