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i Requirements X 1. 2. Prepare corrected income statements for the two years. State whether each year's net income before your correctionsis understated or overstated, and indicate the amount of the understatement or overstatement. d Print Done Eat Well Grocery Income Statements Years Ended November 30, 2025 and 2024 2025 2024 $ 142,000 $ 124,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Plus: Net Cost of Inventory Purchased Cost of Goods Available for Sale $ 14,500 77,000 $ 9,000 72,000 91,500 17,000 81,000 14,500 Less: Ending Merchandise Inventory Cost of Goods Sold 74,500 66,500 Gross Profit 67,500 30,000 57,500 23,000 Operating Expenses Net Income 37,500 34,500 Income Statements Years Ended November 30, 2025 and 2024 2025 2024 Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income Eat Well Grocery reported the following comparative income statements for the years ended November 30, 2025 and 2024: (Click the icon to view the comparative income statements.) During 2025, Eat Well Grocery discovered that ending 2024 merchandise inventory was overstated by $1,000. Read the requirements

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