Healthy Bite Grocery reported the following comparative income statements for the years ended November 30, 2025 and 2024: (Click the icon to view the comparative income statements.) During 2025, Healthy Bite Grocery discovered that ending 2024 merchandise inventory was overstated by $5,000. Read the requirements. Requirement 1. Prepare corrected income statements for the two years. Healthy Bite Grocery Income Statements Years Ended November 30, 2025 and 2024 Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income 2025 2024 Prepare corrected income atc e S of M Do in oods Sold mento for the tu Requirements 1. Prepare corrected income statements for the two 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. Print Done Data table Healthy Bite Grocery Income Statements Years Ended November 30, 2025 and 2024 - Net Sales Revenue 2025 2024 $ 135,000 $ 117,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 15,000 9,500 79,000 75,000 Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale 94,000 84,500 21,000 15,000 Less: Ending Merchandise Inventory Cost of Goods Sold 73,000 69,500 Gross Profit 62,000 47,500 29,000 25,000 Operating Expenses $ 33,000 22,500 Net Income Print Done