The information below was taken from the records of Rice Brothers. 1997 1996 1995 Sales $100,000 $90,000 $85,000 Cost of goods sold 50,000 42,000 40,000 Gross profit $ 50,000 $48,000 $45,000 Expenses 37,000 32,000 20,000 Net income $ 13,000 $16,000 $25,000 You are auditing the Rice Brothers’ books in early 1998 and discover that their inventory count¬ ing procedures are flawed. Accordingly, ending inventory was overstated by $5,000 in 1995, understated by $1,500 in 1996, and overstated by $3,200 in 1997. Rice uses the periodic inven¬ tory method (1994 ending inventory was correctly stated). REQUIRED: Compute the corrected cost of goods sold and net income for 1995, 1996, and 1997.