Hanson's Furniture Outlet reported the following comparative income statement for the years ended June 30, 2014 and 2013.

During 2014, Hanson€™s Furniture Outlet discovered that the 2013 ending inventory, as previously reported, was understated by $2,100.
Requirements
1. Prepare the corrected comparative income statement for the two-year period, complete with a heading for the statement.
2. What was the effect of the error on net income for the two years combined? Explain your answer.

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Hanson's Furniture Outlet Comparative Income Statement For the Years Ended December 31, 2014 and 2013 2014 2013 $187,600 Sales Revenue Cost of Goods Sold: $164,000 Beginning Inventory12,300 Net Purchases Cost of Goods Available 126,800 Ending Inventory Cost of Goods Sold $ 9,100 101,600 110,700 12,300 114,500 14,600 Gross Profit Operating Expenses Net Income 112,200 75,400 32,900 $ 42,500 98,400 65,600 26,700 S 38,900