Merchandise Inventory 365 Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net incomebefore your correctionsis understated or overstated, and indicate the amount of the understatement or overstatement. 3. Compute the inventory turnover and days' sales in inventory using the corrected income statements for the three years. (Round all numbers to two decimals.) Learning Objectives 2, 3, 7 Appendix 6A P6A-32A Accounting for inventory using the periodic inventory system+ FIFO, LIFO, and weighted average, and comparing FIFO, LIFO, and weighted average Futuristic Electronic Center began October with 65 units of merchandise inventory that cost $82 each. During October, the store made the following purchases: 1. LIFO Ending Merch. Inv., $6,680 Oct. 3 25 units @ $ 90 each 12 30 units @ $ 90 each 18 35 units @ $ 96 each Futuristic uses the periodic inventory system, and the physical count at October 31 indicates that 80 units of merchandise inventory are on hand. Requirements 1. Determine the ending merchandise inventory and cost of goods sold amounts for the October financial statements using the FIFO, LIFO, and weighted average inventory costing methods. 2. Net sales revenue for October totaled $28,000. Compute Futuristic's gross profit for October using each method. 3. Which method will result in the lowest income taxes for Futuristic? Why? Which method will result in the highest net income for Futuristic? Why? > Problems Group B For all problems assume the herbetuae SUSIPPS Used MPSS Grad terwise