TES) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $7.000 and that the ending merchandise inventory for 203 overstated by $8,000. The ending merchandise inventory at December 31, 2024, was correct. Read the requirements elid Requirement 1. Prepare corrected Income statements for the three years. eco fe Mountain Stream Carpets Income Statement For the Years Ended December 31, 2025, 2024, and 2023 2025 2024 Ending Merchandise Inventory Overstated by $8,000 Correct Net Sales Revenue e Cost of Goods Sold: Beginning Merchandise Inventory eo tof Plus: Net Cost of Inventory Purchased istm 2023 Ending Merchandise Inventory Understated by $7,000 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 we overstated by $8,000. The ending merchandise inventory at December 31, 2024, was correct. Read the requirements Ending Merchandise Inventory Overstated by $8,000 Ending Merchandise Inventory Understated by $7,000 Correct Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Loss: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses ol of Net Income mm Enter any number in the edit fields and then click Check Answer ins se 3 parts remaining Clear All Check Answer 22 64) unpw UURS SN0W HU Uniowing data. Data Table b med 2025 2024 2023 Net Sales Revenue $ 216,000 $ 161,000 $ 167,000 BRI $ 28,000 Soo $ 24,000 137,000 $ 48,000 83,000 93,000 nir Ne 121,000 Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of faventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses 161,000 35,000 131,000 28,000 24,000 of 126,000 97,000 S: EN 103,000 tofa 64,000 90,000 64,000 64,000 24,000 Profit 35,000 26,000 Net Income $ ingel 29,000 $ 40,000 come Print Done ny nul niy merchandise inventory for 2023 was understated by $7,000 and that the ending merchand rchandise inventory at December 31, 2024, was correct. i Requirements 1. 2. tor urch Sale Prepare corrected income statements for the three years. State whether each year's net income before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) 3. inven Print Done