Pond Rush 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 $7,000 and that the ending merchandise inventory for 2025 was overstated by $8,000. The ending merchandise inventory at December 31, 2024, was correct. Read the requirements 2025 2023 Ending Merchandise Inventory Understated by $7,000 Correct 200000 Requirement 1. Prepare corrected income statements for the three years, Pond Rush Carpets Income Statement For the Years Ended December 31, 2025, 2024, and 2023 2024 Ending Merchandise Inventory Overstated by $8,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased 137000 Cont of Goods Available for Sale 160000 Less Ending Merchandise Inventory Cost of Goods Sold Gross Pront Operating Expenses Net Income 23000 24000 136000 64000 42000 34000 X x Data Table 2025 $ 200,000 2024 $ 168,000 2023 $ 183,000 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 $ 23,000 137,000 160,000 32,000 $ 42,000 90.000 132,000 30,000 $ 30,000 101,000 131,000 23,000 108,000 60,000 34,000 $ 26,000 128,000 72,000 42,000 $ 30,000 102,000 81,000 41,000 40,000 $ Print Done