The accounting records of Webb Music Stores show these data (in thousands):

In early 2015, a team of auditors discovered that the ending inventory of 2012 had been understated by $10 thousand. Also, the ending inventory for 2014 had been overstated by $8 thousand. The ending inventory at December 31, 2013, was correct.
Required
1. Show corrected comparative income statements for the three years.
2. State whether each year's net income as reported here and the related owner's equity amounts are understated or overstated. For each incorrect figure, indicate the amount of the understatement or overstatement.

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2014 2013 2012 Net sales revenue $426 $366 $378 Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less: Ending inventory Cost of goods sold Gross margin Operating expenses $ 56 $ 80 $ 96 276 240 216 332 320 312 92 56 80 240 264 232 186 102 146 148 92 110 $ 36 Net income $ 38 $ 10