PF6-31A (similar to) Question Help Evergreen Carpets' books show the following data. (Click the icon to view the income statements.) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $4,000 and that the ending merchandise inventory for 2025 was overstated by $5,000. The ending merchandise inventory at December 31, 2024, was correct. Read the requirements Requirement 1. Prepare corrected income statements for the three years. 2023 Evergreen Carpets Income Statement For the Years Ended December 31, 2025, 2024, and 2023 2025 2024 Ending Merchandise Inventory Overstated by $5,000 Correct Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Ending Merchandise Inventory Understated by $4,000 Ending Merchandise Inventory Overstated by $5,000 Ending Merchandise Inventory Understated by $4,000 Correct Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Carpets' books show the following data. Data Table X 2025 2024 2023 Net Sales Revenue $ 201,000 $ 166,000 177,000 Cost of Goods Sold: RI $ 46,000 Boo $ 24,000 135,000 $ 27,000 90,000 80,000 anir Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold 117,000 Ne 159,000 35,000 126,000 27,000 24,000 of 124,000 93,000 99,000 S: En Gross Profit 73,000 tof 77,000 52,000 78,000 41,000 Operating Expenses 45,000 Profit $ 25,000 Net Income $ 28,000 $ 37,000 cing E come Print Done any nu! rts maining Clear All Check Answer 22