10 E7-19 (Algo) (Supplement 7B) Analyzing and Interpreting the Impact of an Inventory Error [LO 7-S2] Dallas Corporation prepared the following two income statements: 0.65/1 points awarded Scored Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses First Quarter Second Quarter $ 21,500 $ 25,800 $ 4,300 $ 5,300 8,300 12,600 5,300 13,300 18,600 10,300 7,300 14,200 6,300 8,300 17,500 7,300 Income from Operations $ 7,900 $ 10,200 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $6,250. The ending inventory for the second quarter was correct. Required: 1. What effect would the error have on total Income from Operations for the two quarters combined? 2. What effect would the error have on Income from Operations for each of the two quarters? 3. Prepare corrected income statements for each quarter. Ignore income taxes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What effect would the error have on Income from Operations for each of the two quarters? First Quarter Second Quarter < Required 1 Required 3