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Harmony Carpets's books show the following data. (Click the icon to view the income statements.) In early 2020, auditors found that the ending merchandise inventory

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Harmony Carpets's books show the following data. (Click the icon to view the income statements.) In early 2020, auditors found that the ending merchandise inventory for 2017 was understated by $5,000 and that the ending merchandise inventory for 2019 was overstated by $6,000. The ending merchandise inventory at December 31, 2018, was correct. Read the requirements Requirement 1. Prepare corrected income statements for the three years. Harmony Carpets Income Statement For the Years Ended December 31, 2019, 2018, and 2017 2019 2018 2017 Ending Merchandise Ending Merchandise Inventory Overstated by 56,000 Inventory Understated by $5,000 Correct Net Sales Revenue Cost of Goods Sold Beginning Merchandise Inventory Nat Cost of Purchases Cost of Goods Available for Sale Choose from any list or enter any number in the input fields and then continue to the next question, ts's books show the following data. ud 0 Data Table 2017 2018 $ 164,000 $ 179,000 s 37.000 89,000 140,000 100,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchase Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit 818 81 125.000 18,000 126,000 25.000 130,000 107,000 101.000 ver 81,000 57,000 24,000 Operating Expenses 57,000 28,000 29,000 78,000 41,000 37,000 Net Income M of P Bood Print Done any list or enter any number in the input fields and then continue to the next question ed id Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net income before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Print Done nyentory

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