Following are condensed income statements for Uncle Bill's Home lmprovement Center for the years ended December 31, 2014 and 2013 2013 2014 Sales 649,440 628,320 Cost of Goods Sold (485,520) (432,480) Gross profit 163,920 195,840 operating expenses (124,440) (113,640) Net income (ignoring income taxes) 39,480 82,200 Uncle Bill was concerned about the operating results for 2014 and asked his recently hired accountant, "lf sales increased in 2014, why was net income less than half of what it was in 2013?" In February of 2015, Uncle Bill got his answer: "The ending inventory reported in 2013 was overstated by $28,200 for merchandise that we were holding on consignment on behalf of Kirks Servistar. We still keep some of their appliances in stock, but the value of these items was not included in the 2014 inventory count because we don't own them." Required 1: Recast the 2013 and 2014 income statements to take into account the correction of the 2013 ending inventory error. 2013 Sales 649,440 628,320 Cost of goods sold Gross profit Operating expenses Net income (ignoring income taxes) Required 2 (a) Calculate the combined net income for 2013 and 2014 before and after the correction of the error. 2014 Combined net income Total 2013 Before correction of error After correction of error