Wally Care books show the following data miche con to view the income statement In early 2000, autors found that the ending merchandise inventory for 2023 was understated by $7.000 and in the ending merchandise inventory for 2025 w overstated by 58,000. The ending marchandise Inventory at December 31, 2024, was correct De 2025 2024 2023 $ 208,000 $ 164,000 $ 174,000 $ 41,000 $ 25,000 134,000 28,000 96,000 86,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses 159,000 33,000 124,000 25,000 127,000 28,000 126,000 99,000 99,000 82,000 55,000 75,000 65,000 37,000 39,000 Net Income 27,000 28,000 $ 36,000 Print Done 1. Prepare corrected income statements for the three years. 2. State whether each year's net income-before your correctionsis understated or overstated, and indicate the amount of the understatement or overstatement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Print Donel Requirement 1. Prepare corrected income statements for the three years. Waterlily 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 Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased 2023 Ending Merchandise Inventory Understated by $7,000 Cost of Goods Available for Sale Loss Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Requirement 2. State whether each year's not income-before your correction understated or overstated, and indicate the amount of the understatement ox overstatement Year Prior to correction not income was 2025 2024 2023 Requirement 3. Compute the inventory tumover and days' sales in inventory using the corrected income statement for the three years, (Round all numbers to two decimo) Select the inbels and enter the amounts to compute inventory turnover for ench year. (Round your answers to two decimal places, X.XX) Inventory turnover 2025 times 2024 times 2023 times Now select the labels and enter the amounts to compute days' sales in inventory for each year (Enter all amounts to two decimal places, Xxx) Days/ sale in Inventory days 2025 days 2024 days - 2023 Choose from any list or enter any number in the input fields and then continue to the next