Plush River Carpets's books show the following data: Click the icon to view the income statements.) In early 2018, auditors found that the ending merchandise inventory for 2015 was understated by $5,000 and that the ending merchandise inventory for 2017 was overstated by $6,000. The ending merchandise inventory at December 31, 2016, was correct. Read the requirements. Requirement 1. Prepare corrected income statements for the three years. Plush River Carpets Income Statement For the Years Ended December 31, 2017, 2016, and 2015 2017 2016 Ending Merchandise Inventory Overstated by $6,000 Correct Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory 2015 Ending Merchandise Inventory Understated by $5,000 Cost of Goods Sold Gross Profit Gross Profit Operating Expenses TII Net Income Requirement 2. State whether each year's net income before your correctionsis understated or overstated, and indicate the amount of the understatement or overstatement. Year: Prior to correction net income was 2017 2016 2015 Requirement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Select the labels and enter the amounts to compute inventory turnover for each year. (Round your answers to two decimal places, X.XX.) = Inventory turnover = times 2017 2016 1 times 2015 = times Now select the labels and enter the amounts to compute days' sales in inventory for each year. (Enter all amounts to two decimal places, X.XX.) Days' sales in inventory 2017 days days 2015 days 2016 2015 2017 $ 210,000 2016 $ 167,000 $ 177,000 $ $ 22,000 135,000 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 $ 27,000 99,000 126,000 22,000 126,000 39,000 89,000 128,000 27,000 157,000 31,000 104,000 101,000 84,000 54,000 63,000 39,000 76,000 40,000 $ 30,000 $ 24,000 $ 36,000