Chapter 6 question 3

Waterlily Carpets' books show the following data. (Click the icon to view the income statements.) Read the requirements. Requirement 1. Prepare corrected income statements for the three years Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Data table Requirement 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement Requirement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Select the labels and enter the amounts to compute inventory turnover for each year. (Round your answers to two decimal places, X.XX.)