Complete the following assignment and submit your work to the dropbox. Background: The Mason family operates a building supply store and counts the physical inventory once a year. The value assigned to the year-end inventory was $35 000. They failed to count the inventory on four shelves in the warehouse. As a result, the year-end financial statements were prepared with an incorrect valuation for ending inventory. A couple of weeks after the statements were prepared, the omission was discovered and reported to the company's accountant. The value of the inventory missed was $7 500. Required: 1. Create a mini-income statement including the incorrect ending inventory on the spreadsheet provided. Net sales for the period were $325 000; beginning inventory was $66 000; purchases were $24 000; and operating expenses were $163 000. 2. Create a revised income statement with the correct ending inventory figure. 3. Evaluate the effect of the omission on each of the following: a. cost of goods sold b. gross profit c. net income d. the balance sheet 4. Assume the accountant did NOT correct the error this year, and she permitted this error to be carried forward to the next accounting year. What would be the effect of this error on next year's: a. income statement? b. balance sheet?