Please answer all parts!

Basic Foods Grocery reported the following comparative income statements for the years ended November 30, 2025 and 2024: (Click the icon to view the comparative income statements.) During 2025, Basic Foods Grocery discovered that ending 2024 merchandise inventory was overstated by $5,000 Read the requirements. - X Data Table Requirement 1. Prepare corrected income statements for the two years. Basic Foods Grocery Income Statements Years Ended November 30, 2025 and 2024 , 2025 2024 Basic Foods Grocery Income Statements Years Ended November 30, 2025 and 2024 Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory 2025 2024 Net Sales Revenue $ 138,000 $ 118,000 Net Cost of Purchases Cost of Goods Available for Sale S 9.500 Less: Ending Merchandise Inventory S 14,000 73,000 68,000 Cost of Goods Sold Gross Profit B7,000 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 75,500 14,000 16,500 Operating Expenses 70,500 61,500 Net Income 87.500 28,000 56,500 19.000 - X Requirements S 39,500 $ 37,500 Net Income 1. 2. Prepare corrected income statements for the two years. State whether each year's net income before your corrections is understated or overstated, and indicate the amount of the understatement or overstatement. Print Done