P9-7B The Lamarque Copper Company books show the data (in thousands) on page 435. In early 20X3, internal auditors found that the ending inventory for 20X0 had been overstated by $8 thousand and that the ending inventory for 20X2 had been understated by $4 thou- sand. The ending inventory at December 31, 20X1, was correct. (Thousands) Net sales revenue 20X2 20X1 20X0 $360 $285 $244 Cost of goods sold: Beginning inventory. $ 65 $55 $ 70 Net purchases..... 195 135 130 Cost of goods available 260 190 200 Less: Ending inventory. (70) (65) (55) Cost of goods sold. 190 125 Gross profit. 170 160 Operating expenses 113 109 Net income $ 57 $ 51 145 99 Required 1. Show corrected income statements for the three years. 2. State whether each year's net income and owner's equity amounts are understated or overstated. Ignore income tax because Lamarque is a proprietorship. For each incorrect figure, indicate the amount of the understatement or overstatement.