Grants Corporation prepared the following two income statements (simplified for illustrative purposes): Second Quarter First Quarter 2014 2014 Sales revenue $12,100 $18,700 Cost of goods sold $ 4,300 Beginning inventory $ 3,500 Purchases 2,700 12,300 Goods available for sale 7,000 15,800 Ending inventory 3,500 9,700 Cost of goods sold 3,500 6,100 Gross profit 8,600 12,600 Expenses 4,700 5,800 Pretax income $3,900 $ 6,800 3. Prepare corrected income statements for each quarter. First Quarter Second Quarter $ 12,100 $ 18,700 Cost of goods sold: Beginning inventory $ 4,300 Purchases 2,700 Goods available for sale 7,000 Cost of goods sold Cost of goods sold Gross profit Ending inventory Cost of goods sold Pretax income 3,500 3,500 $ 4,900 12,300 17,200 9,700 9,700 4. Prepare the schedule with the following headings to reflect the comparative effects of the correct and incorrect amounts on the income statement. Beginning inventory Ending inventory Cost of goods sold Gross profit Pretax income 1st Quarter 2nd Quarter Incorrect Correct Error Incorrect Correct Error