$\backslash$table$[[$Sales Revenue,First Quarter,Second Quarter,$],[$Cost of Goods Sold,$$25,000,,],[$Beginning Inventory,$$5,000,$$$30,000,],[$Purchases$,9,000,$$$6,000,],[$Goods Available for Sale,$14,000,14,000,],[$Ending Inventory,$6,000,20,000,],[$Cost of Goods Sold,,$11,000,],[$Gross Profit,$8,000,17,000,9,000],[$Operating Expenses,$7,000,21,000,],[$Income from Operations,,$$10,000,8,000]]$

During the third quarter, the company's internal auditors discovered that the ending inventory for $$7,300.$ The ending inventory for the second quarter was correct.

Required:

What effect would the error have on total Income from Operations for the two quarters combine

What effect would the error have on Income from Operations for each of the two quarters?

Prepare corrected income statements for each quarter. Ignore income taxes.

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

Required $1$

Required $2$

Required $3$

What effect would the error have on Income from Operations for each of the two quarters?

$\backslash$table$[[$First Quarter,Income from Operations Understated by$,$$$,11,300],[$Second Quarter,Income from Operations Overstated by$,$$$,]]$

Required $1$