Waterlily Carpets' book shows the following data:

Waterily Carpets' books show the following data. IIIB) (Click tho icon to viow the inoome stalements.) In early 2026, nudtorn found that the onding merchandise invertioy for 2023 wes underitated by 37,000 end that the ending merchardise inverilory for 2025 was overstated by $3,000. The ending merchandise invenlory at December 31, 2024, was convot. Reed the requirements. Data table Requirements 1. Prepare corrected income statements for the three years. 2. State whether each year's net income before your corrections-is understated or overstated, and indicate the amount of the understatement or overstatement. 3. Compute the inventory tumover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.)