Quarter 3 Quarter 4 $ 148,000 Partial income statements for Murphy & Murphy (M&M) reported the following summarized amounts: Quarter 1 Quarter 2 Net Sales $ 140,000 $ 139,000 $ 160,000 Cost of Goods Sold 63,000 69,500 65,050 63,640 Gross Profit $ 77,000 $ 69,500 $ 94,950 $ 84,360 After these amounts were reported, M&M's accountant determined the inventory at the end of Quarter 2 was understated by $6,950, The inventory balance at the end of the other three quarters was accurately stated. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit Net Sales) * 100 Required 1 Required 2 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. MURPHY & MURPHY COMPANY Partial Income Statements (Corrected) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Net Sales Cost of Goods Sold Gross Profit Required 1 Required 2 Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit + Net Sales) * 100. (Round your answers to the nearest whole percent.) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Before Correction % After Correction % Does the pattern of gross profit percentages lend confidence to your corrected amounts?