First Quarter $ 24,500 Second Quarter $ 29,400 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations $ 4,900 8,900 13,800 5,900 $ 5,900 13,900 19,800 10,900 7,900 16,600 6,900 $ 9,700 8,900 20,500 7,900 $ 12,600 During the third quarter, the company's internal auditors discovered that the ending inventory for the first quarter should have been $7,150. The ending inventory for the second quarter was correct. Required: 1. What effect would the error have on total Income from Operations for the two quarters combined? 2. What effect would the error have on Income from Operations for each of the two quarters? 3. Prepare corrected income statements for each quarter. Ignore income taxes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What effect would the error have on total income from Operations for the two quarters combined? Two Quarters Combined