45 85 g. L C00 9. Steel Mill began august with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Units Unit Cost Unit Sale Price Aug. 3 Sale $85 8 Purchase se 90 $54 21 Sale 88 30 Purchase 15 58 a. Prepare a perpetual inventory record for the inventory using the FIFO inventory costing method, then determine cost of goods sold, ending inventory and gross profit. Inventory on Hand Cost of Goods Sold Purchases Unit Total Total Quantity Date Unit Total Quantity Quantity Unit Cost Cost Cost Cost Cost Cost Aug 1 Aug 3 Aug 8 Aug 21 Aug 30 Totals Gross Profit: Vies wat they Vabi en FO 10. Empire State Carpet's books show the following data. In early 2020. auditors found that the ending Inventory for 2017 was understated by $8,000 and that the ending Inventory for 2019 was overstated by $9.000. Ending inventory at December 31, 2018, was correct. 2019 Net Sales Revenue 2018 2017 Cost of Goods Sold: $ 220,000 $ 162,000 $ 176,000 Beginning Inventory 22,000 29,000 46,000 Net Cost of Purchases 132.000 90.000 76,000 Cost of Goods Available for Sale 154,000 119,000 122.000 Less: Ending Inventory 32.000 22.000 29.000 Cost of Goods Sold 122.000 97.000 65,000 98,000 83,000 Gross Profit 72.000 38.000 48.000 Operating Expenses 27.000 35,000 Net Income 26.000 93.000 a. Prepare corrected income statements for the three years. 2019 2018 2017 Net Sales Revenue Cost of Goods Sold: Beginning Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income b. State whether each year's net income-before your corrections- is understated or overstated, and indicate the amount of the understatement or overstatement. 2017: 2018: 2019: C. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals) 2017 2018 2019 Inventory Turnover Days' Sales in Inventory