Check my work 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: Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations First Quarter Second Quarter $ 24,000 $ 28,800 $ 4,800 $ 5,800 8,800 13,600 5,800 13,800 19,600 10,800 7,800 16,200 6,800 8,800 20,000 7,800 $ 12,200 $ 9,400 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $7,000. 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.