The records of Kmeta Inc. show the following data for the years ended July 31

After the company's July 31, 2012, year end, the accountant discovers two errors:
1. Ending inventory on July 31, 2010, was actually $33,000, not $24,000. Kmeta had goods held on consignment at another company that were not included in the inventory account.
2. A purchase of merchandise on account for $5,000 was recorded as a purchase in July 2011 (fiscal 2011) and included in the $40,000 2011 Ending inventory balance. It should have been recorded as a purchase in August 2011 (fiscal 2012). The Ending inventory of $40,000 was correct at the end of July 2012.
Instructions
(a) For each of the three years, prepare both incorrect and corrected income statements through to profit before income tax.
(b) What is the combined (total) impact of these errors on retained earnings (ignoring any income tax effects) for the three years before correction? After correction?
(c) Calculate both the incorrect and corrected inventory turnover ratios for 2012 and 2011.

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2012 2011 2010 Income statement: Sales Cost of goods sold Operating expenses $340,000 233,000 68,000 $320,000 $300,000 209,000 64,000 220,000 64,000 Statement of financial position: Merchandise inventory 40,000 40,000 24,000