The accounting records of New Life Home Store show these data (in millions) (Click the icon to view the income statements.) The shareholders are very happy with New Life's steady increase in net income. However, auditors discovered that the ending inventory for 2016 was understated by $5 million and that the ending inventory for 2017 was understated by S6 million. The ending inventory at December 31, 2018, was correct. Read the requirements. Requirement 1. Show corrected income statements for each of the three years. x Data Table New Life Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2018, 2017, and 2016 2018 2017 2018 2017 2016 2016 $ 48 $ 45 $ 42 Net sales revenue $ $ $ 11 30 10 28 9 26 Net sales revenue Cost of goods sold: Beginning inventory ..... Net purchases Cost of goods available Less ending inventory .. Cost of goods sold Gross profit. Operating expenses 41 38 (11) 35 (10) Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross profit Operating expenses (12) 29 27 25 19 18 Gilutleie 17 2 2 2 $ 17 $ 16 $ 15 Net income Net income Requirement 2. How much did these assumed corrections add to or take away from New Life's total net income over the three-year period? How did the corrections affect the trend of net income? Print Done How much did these assumed corrections add to or take away from New Life's total net income over the three-year period? Requirements - X How did the corrections affect the trend of net income? Requirement 3. Will New Life's shareholders still be happy with the company's trend of net income? Explain. The shareholders be happy with the trend of net income because 1. Show corrected income statements for each of the three years. 2. How much did these assumed corrections add to or take away from New Life's total net income over the three-year period? How did the corrections affect the trend of net income? 3. Will New Life's shareholders still be happy with the company's trend of net income? Explain. Print Done