Partial Income statements for Murphy & Murphy (M&M) reported the following summarized amounts: Quarter 1 Net...

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Partial Income statements for Murphy & Murphy (M&M) reported the following summarized amounts: Quarter 1 Net Sales Cost of Goods Sold Gross Profit $ 120,000 66,000 $ 54,000 Quarter 2 $ 119,000 71,400 $ 47,600 Quarter 3 $ 140,000 71,050 Quarter 4 $ 128,000 67,840 $ 68,950 $ 60,160 After these amounts were reported, M&M's accountant determined the Inventory at the end of Quarter 2 was understated by $5,950. 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 (a) 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 calculated as (Gross Profit + Net Sales) 100. 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) Net Sales Cost of Goods Sold Gross Profit Quarter 1 Quarter 2 Quarter 3 Quarter 4 < Required 1 Required 2 > Partial Income statements for Murphy & Murphy (M&M) reported the following summarized amounts: Quarter 1 Net Sales Cost of Goods Sold Gross Profit $ 120,000 66,000 $ 54,000 Quarter 2 $ 119,000 71,400 $ 47,600 Quarter 3 $ 140,000 71,050 Quarter 4 $ 128,000 67,840 $ 68,950 $ 60,160 After these amounts were reported, M&M's accountant determined the Inventory at the end of Quarter 2 was understated by $5,950. 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 (a) 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 calculated as (Gross Profit + Net Sales) 100. 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) Net Sales Cost of Goods Sold Gross Profit Quarter 1 Quarter 2 Quarter 3 Quarter 4 < Required 1 Required 2 >