Data table - 2025 2024 2023 $ 215,000 $ 170,000 $ 185,000 $ 22,000 $ 25,000 $ 39,000 139,000 101.000 90.000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses 161,000 126,000 129,000 32,000 22,000 25,000 129.000 104,000 104,000 86,000 66,000 37.000 81,000 47,000 61,000 Print Done Incol Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your correctionsis 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.) Waterlily Carpets' books show the following data. Click the icon to view the income statements.) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $4,000 and that the ending merchandise inventory for 2025 was overstated by $5,000. The ending merchandise inventory at December 31, 2024, was correct Read the requirements 2023 Ending Merchandise Inventory Understated by $4,000 Correct Requirement 1. Prepare corrected income statements for the three years. Waterlily Carpets Income Statement For the Years Ended December 31, 2025, 2024, and 2023 2025 2024 Ending Merchandise Inventory Overstated by $5,000 Net Sales Revenue Cost of Goods Sold Beginning Merchandise Inventory Plus: Not Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cont of Goods Sold Gross Profit Operating Expenses Net Income Waterlily Carpets' books show the following data. Click the icon to view the income statements.) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $4,000 and that the ending merchandise inventory for 2025 was overstated by $5,000. The ending merchandise inventory at December 31, 2024, was correct Read the requirements