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.$)$Partial income statements for Murphy & Murphy $($M & M$)$ reported the following summarized amounts:

After these amounts were reported, M & M$\text{'}$s accountant determined the inventory at the end of Quarter $2$ was understated by $$4,950.$

The inventory balance at the end of the other three quarters was accurately stated.

Required:

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

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$)100$

Complete this question by entering your answers in the tabs below.

Required $1$

Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.