The accounting records of Treviiio's Mexican Restaurant show these data (in thou- sands): 20X3 20X2 20X1 Net sales revenue $ 135 15 150 (30) S210 120 90 74 S 16 $ 25 100 125 (15) S165 110 55 38 S 17 $ 40 90 130 (25) SI 70 Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less: Ending inventory Cost of goods sold 105 Gross profit Operating expenses Net income 65 46 S 19 In early 20X4, internal auditors discovered that the ending inventory for 20X1 had been understated by $8 thousand and that the ending inventory for 20X3 had been overstated by $5 thousand. The ending inventory at December 31, 20X2, was correct. Required 1. Show corrected income statements for the three years. 2. State whether each year's net income as reported here and the related owner's equity amounts are understated or overstated. Ignore income tax because Trevifio's is organized as a proprietorship. For each incorrect figure, indicate the amount of the understatement or overstatement.