Partial income statements for Murphy & Murphy (M&M) reported the following summarized amounts: Net Sales Cost of Goods Sold Gross Profit Quarter 1 $200,000 150,000 $ 50,000 Quarter 2 $199,000 159,209 $ 39,800 Quarter $220,000 155,050 $ 64,950 Quarter 4 $288.800 151,840 $ 56,160 After these amounts were reported, M&M's accountant determined the inventory at the end of Quarter 2 was understated by $9,950. The inventory balance at the end of the other three quarters was accurately stated Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction Does the pattern of gross profit percentages tend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit Net Sales) * 100 ces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. MURPHY & MURPHY COMPANY Partial Income Statements (Corrected) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Net Sales Cost of Goods Sold Gross Profit RA Required 2 > Partial income statements for Murphy & Murphy (M&M) reported the following summarized amounts Net Sales Cost of Goods Sold Gross Profit Quarter $200.000 150.000 $ 50,000 Quarter 2 $199.000 150 200 $ 39, 1100 Quarter 3220,000 155,00 564,05 Quarter $288,000 151.140 5 56,160 After these amounts were reported, M&M's accountant determined the inventory at the end of Quarter 2 was understated by 59.950 The inventory balance at the end of the other three quarters was accurately stated Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction Does the pattern of gross profit percentages lend confidence to your corrected amounts! TIP Gross profit percentage is calculated as (Gross Profit Net Sales) 100 Complete this question by entering your answers in the tabs below. Required 1 Requred2 Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts TID Gross profit percentage is calculated as (Gross Profit Net Sale 100. (Bound you to the nearest whole percent) Gaiter 4 Qutur 1 Quarter Quarter Before Correction After Correction * Dans the pattern of os profil percentages en conlidence to your connected amounts? %