Dalez Corporation prepared the following two statements of earnings (simplified for illustrative purposes): First Quarter 2017 Second Quarter 2017 18,300 Sales revenue $ 11,300 $ Cost of sales Beginning inventory $ 4,100 $ 3,900 Purchases 3,100 13,100 Cost of goods available for sale 7,200 17,000 Ending inventory 3,900 9,100 Cost of sales 3,300 7,900 10,400 Gross profit 8,000 Expenses (operating) 5,100 6,100 Pretax earnings $ 2,900 $ 4,300 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,310. Required: 1. What effect did this error have on the combined pretax earnings of the two quarters? 410 Understated 410 Overstated No error 2. Did this error affect the earnings per share amounts for each quarter? Yes No 3. Prepare corrected statements of earnings for each quarter. Cost of sales: First Quarter 2017 Second Quarter 2017 4. Set up a schedule with the following headings to reflect the comparative effects of the correct and incorrect amounts on the statement of earnings: (Select "Understated" or "Overstated" as applicable. Leave no cells blank; select "No error" from the dropdowns if no error is recognized. Input all amounts as positive values.)