Earth Foods Grocery reported the following comparative income statements for the years ended November 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 $5,000. Read the requirements. Data table Earth Foods Grocery Income Statements Years Ended November 30, 2025 and 2024 Requirement 1. Prepare corrected income statements for the two years. Earth Foods Grocery Income Statements Years Ended November 30, 2025 and 2024 Net Sales Revenue 2025 2024 $ 142,000 $ 115,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 14,500 $ 11,000 2025 2024 76,000 66,000 Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory $ 11,000 76,000 66,000 Net Cost of Purchases Cost of Goods Available for Sale 77,000 16,800 Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit 22,000 18,000 Operating Expenses $ 142,000 $ 115,000 Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale 90,500 77,000 16,800 14,500 Less: Ending Merchandise Inventory Cost of Goods Sold 73,700 62,500 Gross Profit 68,300 52,500 22,000 18,000 Operating Expenses $ 46,300 $ 34,500 Net Income Net Income Print Done