Giselle Tile & Marble Corporation reported the following comparative income statements for the years ended June 30, 2018, and 2017:

Giselle Tile & Marble Corporation Income Statements For the Years Ended June 30, 2018 and 2017 2018 2017 Sales revenue $ 143,000 $ 117,000 Cost of goods sold: Beginning inventory $ 16,500 $ 14,000 Net purchases 77,000 68,000 Cost of goods available 93,500 82,000 Ending inventory (20,000) (16,500) Cost of goods sold 73,500 65,500 Gross profit 69,500 51,500 Operating expenses 22,000 21,000 Net income $ 47,500 $ 30,500

Giselle's president and shareholders are thrilled by the company's boost in sales and net income during 2018. Then the accountants for the company discover that ending 2017 inventory was understated by $10,000.

Requirement:

1. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Giselle really perform in as compared with 2017?

Prepare the corrected comparative income statement for the 2-year period.

Giselle Tile & Marble Corporation
Income Statements (Corrected)
Years Ended June 30, 2018 and 2017
			2018		2017
	Sales revenue
	Cost of goods sold:
		Beginning inventory
		Net purchases
		Cost of goods available
		Ending inventory
		Cost of goods sold
	Gross profit
	Operating expenses
	Net income