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 Revenue $ 19,500 $ 23,400 Cost of Goods Sold Beginning Inventory $ 3,900 $ 4,900 Purchases 7,900 12,900 Goods Available for Sale 11,800 17,800 Ending Inventory 4,900 9,900 Cost of Goods Sold 6,900 7,900 Gross Profit 12,600 15,500 Operating Expenses 5,900 6,900 Income from Operations $ 6,700 $ 8,600 During the third quarter, the companys internal auditors discovered that the ending inventory for the first quarter should have been $5,650. The ending inventory for the second quarter was correct. Required: What effect would the error have on total Income from Operations for the two quarters combined? What effect would the error have on Income from Operations for each of the two quarters? Prepare corrected income statements for each quarter. Ignore income taxes