Evergreen Carpets's books show the following data:

	2017	2016	2015
Net Sales Revenue	$218,000	$161,000	$176,000
Cost of Goods Sold:
Beginning Merchandise Inventory	$21,000	$25,000	$41,000
Net Cost of Purchases	130,000	98,000	83,000
Cost of Goods Available for Sale	151,000	123,000	124,000
Less: Ending Merchandise Inventory	33,000	21,000	25,000
Cost of Goods Sold	118,000	102,000	99,000
Gross Profit	100,000	59,000	77,000
Operating Expenses	75,000	29,000	43,000
Net Income	$25,000	$30,000	$34,000

In early 2018, auditors found that the ending merchandise inventory for 2015 was understated by $ 6,000 and that the ending merchandise inventory for 2017 was overstated by $ 7,000. The ending merchandise inventory at December 31, 2016, was correct.Read the requirements.

Requirement 1. Prepare corrected income statements for the three years.

Evergreen Carpets
Income Statement
For the Years Ended December 31, 2017, 2016, and 2015
	2017		2016		2015
	Ending Merchandise				Ending Merchandise
	Inventory Overstated				Inventory Understated
	by $7,000		Correct		by $6,000
Net 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 corrections-is understated or overstated, and indicate the amount of the understatement or overstatement.

Year:	Prior to correction net income was
2017
2016
2015

Requirement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.)

Select the labels and enter the amounts to compute inventory turnover for each year. (Round your answers to two decimal places, X.XX.)

		/		=	Inventory turnover
2017		/		=		times
2016		/		=		times
2015		/		=		times

Now select the labels and enter the amounts to compute days' sales in inventory for each year. (Enter all amounts to two decimal places, X.XX.)

		/		=	Days' sales in inventory
2017		/		=		days
2016		/		=		days
2015		/		=		days