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 Secund Quarter Sales Revenue $18,000 $21,000 Cast of Goods Sold Beginning Inventory $3,100 $4,600 Purchases 7,600 12,500 Goods Available for sale 11,200 17,200 Ending Inventory 4,600 9,600 Cost of Goods Sold Gross Profit Operating Expenses Income from Operations 6,600 11,400 5,600 $5,800 14,000 6,600 $ 7,400 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $5,200. 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. Check my work