Please complete all of P6-31A

OFT LUN! Learning Objectives 5, 6 2. 2017, overstated $7,000 P 6-31A Correcting inventory errors over a three-year period and computing inventory turnover and days' sales in inventory Lake Air Carpets's books show the following data. In early 2018, auditors found the ending merchandise inventory for 2015 was understated by $6,000 and that the ending merchandise inventory for 2017 was overstated by $7,000. The ending merchandise inventory at December 31, 2016, was correct. 2015 2017 $ 208,000 2016 $ 164,000 $ 177,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income $ 21,000 140,000 161,000 33,000 $ 28,000 103,000 131,000 21,000 $ 39,000 91,000 130,000 28,000 128,000 80,000 52,000 $ 28,000 110,000 54,000 25,000 $ 29,000 102,000 75,000 35,000 40,000 $ Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. 3. Compute the inventory turnover and days' sales in inventory using the corrected income statements for the three years. (Round all numbers to two decimals.)