Earth Foods Grocery reported the following comparative income statements for the years ended April 30, 2025 and 2024: (Click the icon to view the comparative income statements.) During 2025, Earth Foods Grocery discovered that ending 2024 merchandise inventory was overstated by $4,000. Read the requirements. Requirement 1. Prepare corrected income statements for the two years. Earth Foods Grocery Income Statements Years Ended April 30, 2025 and 2024 Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Requirements 2025 2024 1. Prepare corrected income statements for the two years. 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. Print Done