nloads/Horngren's%20Financial%20&%20Managerial%20Accounting%20(5th%20Edition)%20-%20Tracie%20L.%20Mi Learning objectives 5, 6 P6-31A Correcting inventory errors over a three-year period and computing inventory turnover and days' sales in inventory 2. 2017. overstated $7,000 Lake Air Carpetss books show the following data. In early 2018, auditors found that the ending merchandise inventory for 2015 was understated by s6,000 and that the ending merchandise inventory for 2017 was overstated by S7,000. The ending merchandise inventory at December 31, 2016, was correct. 2017 2016 2015 Net Sales Revenue 208,000 164,000 177,000 Cost of Goods Sold: Beginning Merchandise Inventory s 21.000 28,000 39,000 Net Cost of Purchases 140.000 103,000 91.000 Cost of Goods Available for Sale 161.000 131.000 130,000 Less: Ending Merchandise Inventory 33,000 28,000 Cost of Goods Sold 128,000 110.000 102,000 Gross Profit 80,000 54,000 75,000 Operating Expenses 52,000 25,000 35,000 Net Income S 28,000 S 29,000 S 40,000