Partial income statements for Murphy& Murphy (M & M) reported the following summarized amounts Quarter 1 Quarter 2 Quarter 3 Quarter 4 $140,000 $139,000 $160,000 $148,000 Net Sales Cost of Goods Sold Gross Profit 56,000 62,550 57,050 56,240 84,000 76,450 $102,950 91,760 After these amounts were reported, M & M's accountant determined the inventory at the end of Quarter 2 was understated by $6,950. The inventory balance at the end of the other three quarters was accurately stated Required 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error 2. Compute the gross profit percentage for all four quarters both /e)before the correction and (b)after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? TIP Gross profit percentage is calcuated as (Gross Profit Net Sales) 100 Complete this question by entering your answers in the tabs below. Required 1 Required 2 K Prev 5 of 5 EE Complete this question by entering your answers in the tabs below. Required 1 Required 2 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. MURPHY &MURPHY COMPANY Partial Income Statements (Corrected) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Net Sales Cost of Goods Sold Gross Profit Required 2 K Prev5 of 5 Complete this question by entering your answers in the tabs below Required 1 Required 2 Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction the pattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit Net Sales) x 100, (Round your answers to the nearest whole percent.) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Before Corection After Correction Does the pattern of gross profit percentages lend confidence to your corrected amounts? Required 1 K Prev5 of 5