Dallas Corporation prepared the following two income statements: First Quarter Sales Revenue Cost of Goods Sold Beginning Inventory $ 15,000 Second Quarter $ 18,000 $ 3,000 $ 4,000 Purchases Goods Available for Sale 7,000 10,000 12,000 Ending Inventory 4,000 16,000 9,000 Cost of Goods Sold 6,000 Gross Profit 9,000 Operating Expenses. 5,000 7,000 11,000 6,000 Income from Operations $ 4,000 $ 5,000 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $4,400. The ending inventory for the second quarter was correct.