Dixens Ltd reported the following data (adapted in billions):

Assume that in early 2009, an error was discovered which involved the closing stock for 2006 being overstated by €1 billion and the closing stock for 2007 being understated by €1 billion. The closing stock at year-end 2008 was correct.
Required 

1 Incorporate the above information and show corrected income statements for the three years.
2 Discuss whether each year’s net profit as reported above and the related owners’ equity amounts at the end of the year were understated or overstated. For each incorrect figure, indicate the amount of the understatement or overstatement.
3 How much did these assumed corrections add or take away from the Dixens total net profit over the three-year period? How did the corrections affect the trend of net profit?

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Net sales revenue Cost of goods sold: Opening stock Purchases Cost of goods available Less closing stock Cost of goods sold Gross profit Total operating expenses Net profit 2008 37 2007 2006 34 31 4 3 2 25 24 29 27 22 22 24 (4) (4) (3) 25 23 12 11 10 2 2 200 21 10 8 2