Eat Well Grocery reported the following comparative income statements for the years ended November 30, 2019 and 2018:

Requirement 1:

Requirement 2:

2018 $ 117,000 Eat Well Grocery Income Statements Years Ended November 30, 2019 and 2018 2019 Sales Revenue $ 139,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 12,000 Net Cost of Purchases 76,000 Cost of Goods Available for Sale 88,000 Less: Ending Merchandise Inventory 17,500 Cost of Goods Sold 70,500 Gross Profit 68,500 Operating Expenses 29,000 $ 39,500 Net Income $ 12,000 73,000 85,000 12,000 73,000 44,000 26,000 $ 18,000 Eat Well Grocery reported the following comparative income statements for the years ended November 30, 2019 and 2018: B (Click the icon to view the comparative income statements.) During 2019, Eat Well Grocery discovered that ending 2018 merchandise inventory was overstated by $2,000. Read the requirements. Requirement 1. Prepare corrected income statements for the two years. Eat Well Grocery Income Statements Years Ended November 30, 2019 and 2018 2019 2018 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 Requirement 2. State whether each year's net income-before your correctionsis understated or overstated, and indicate the amount of the understatement or overstatement. Year: Net income prior to correction 2019 2018 correct Choose from any list or ente overstated by understated by input fields and then click Check