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: First Quarter Second Quarter Sales Revenge $ 21,000 $ 25,200 Cost of Goods Sold Beginning Inventory $ 4,200 $ 5,200 Purchases 8,200 13,200 Goods Available for sale 12,400 18,400 Ending Inventory 5,200 10,200 Cost of Goods Sold 7,200 8,200 Gross Profit 13,800 17.000 Operating Expenses 6,200 7,200 Income from Operations $ 7.600 $ 9,800 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $6,100. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What effect would the error have on total income from Operations for the two quarters combined? Two Quarter Combined Maquina Required 2 > During the third quarter the company's Internal auditors discovered that the ending memory $6.100. 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. Complete this question by entering your answers in the tabs below. Required Regund 2 Required 3 What effect would the error have on Income from Operations for each of the two quarters? First Quarter Second Quarter Required What effect would the error have on total income from Operations for 2. What affect would the error have an income from Operations for each of the two quarters? 1. Prepare connected income statements for each quarter. Ignore income taxes Complete this question by entering your answers in the tabs below. Neguired 2 Round Preparecorded income state Required 3 quarter. Ignore income taxes Dallas Corporation Income Statement (Partial) First Quarter Second Quarter