Waterlily Carpets' books show the following data. (Click the icon to view the income statements.) In early 2026, auditors found that the ending merchandise inventory for 2023 was understated by $8,000 and that the ending merchandise inventory for 2025 was overstated by $9,000. The ending merchandise inventory at December 31, 2024, was correct. Read the requirements Requirements 1. Prepare corrected income statements for the three years. 2. 3. State whether each year's net income-before your correctionsis 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.) Data table Net Sales Revenue 2025 2024 2023 $ 213,000 $ 165,000 $ 170,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 17,000 $ 21,000 $ 34,000 140,000 102,000 89,000 Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale 157,000 123,000 123,000 27,000 17,000 21,000 Less: Ending Merchandise Inventory 130,000 106,000 102,000 Cost of Goods Sold Gross Profit 83,000 59,000 68,000 58,000 29,000 35,000 Operating Expenses $ 25,000 $ 30,000 $ 33,000 Net Income