Griffin Corporation prepared the following two income statements (simplified for illustrative purposes): First Quarter Second Quarter Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit $ 5,200 3,800 9,000 4,700 $ 15,800 4,300 11,500 5,800 $5,700 $ 4,700 13,200 17,900 10,000 $21,300 7,900 13,400 Expenses 6,300 Pretax income $7,100 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $5,180. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement.