The accounting records of Salem Home Store show these data (in millions). (Click the icon to view the income statements.) The shareholders are very happy with Salem'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 $6 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. Salem Home Store Income Statements (adapted; amounts in millions) Years Ended December 31, 2018, 2017, and 2016 2018 2017 2016 Net sales revenue 45 42 39 Cost of goods sold: Beginning inventory 5 25 23 21 26 Net purchases Cost of goods available Less ending inventory Cost of goods sold (6) 20 Gross profit 19 8 Operating expenses Net income 11 2018 2017 2016 Net sales revenue. $ 45 $ 42 $ 39 7 6 5 Cost of goods sold: Beginning inventory Net purchases Cost of goods available 25 23 21 32 29 26 Less ending inventory (8) (7) (6) 24 22 20 Cost of goods sold Gross profit. 21 20 19 3 w 3 Operating expenses $ 18 $ 17 $ 16 Net income Print Done 1. Show corrected income statements for each of the three years. 2. How much did these assumed corrections add to or take away from Salem's total net income over the three-year period? How did the corrections affect the trend of net income? 3. Will Salem's shareholders still be happy with the company's trend of net income? Explain