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3 Spears & Cantrell announced Inventory had been overstated by $30 at the end of its second quarter. The error wasn't discovered and corrected in

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3 Spears & Cantrell announced Inventory had been overstated by $30 at the end of its second quarter. The error wasn't discovered and corrected in the company's periodic inventory system until after the end of the third quarter. The following table shows the amounts that were originally reported by the company. 01 02 03 Net Sales $3,400 $4,300 $4,500 Cost of Goods Sold 2,380 2,980 3,180 Gross Profit $1,020 $1,320 $1,320 2015056 Required: 1. Restate the income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each quarter (a) before the correction and (b) after the correction 2-b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Red Reg 2 le 28 Restate the income statements to reflect the correct amounts, after fixing the inventory error SPEARS & CANTRELL COMANY income Stal Conto Net Sales Cost of Good Sold Gross Profit Reg 2A 3 3 Spears & Cantrell announced inventory had been overstated by $30 at the end of its second quarter. The error wasn't discovered and corrected in the company's periodic inventory system until after the end of the third quarter. The following table shows the amounts that were originally reported by the company 050-35 Net Sales Cost of Goods Sold Gross Profit Q1 02 03 $3,400 $4,300 $4,500 2,380 2,980 3,180 $1,020 $1,320 $1,320 Required: 1. Restate the income statements to reflect the correct amounts, after fixing the inventory error 2-0. Compute the gross profit percentage for each quarter (e)before the correction and (b) after the correction 2-b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Compute the gross profit percentage for each quarter (a) before the correction and (b) after the correction (Round your answers to the nearest whole percent) 01 02 03 Before Correction After Correction %

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