Maple Bay Marine Supply reported the comparative income statement for the years ended September 30, 2014 and 2013, shown below.

During 2014, accountants for the company discovered that ending 2013 inventory was overstated by $5,000. Prepare the corrected comparative income statement for the two-year period, complete with a heading for the statement. What was the effect of the error on net income for the two years combined? Explain your answer.

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MAPLE BAY MARINE SUPPLY Income Statement For the Years Ended September 30, 2014 and 2013 2014 2013 $165,000 $146,000 Sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Ending inventory Cost of goods sold Gross margin Operating expenses $ 16,500 91,000 $15,400 78,000 93,400 107,500 23,600 16,500 83,900 81,100 76,900 69,100 36,400 $ 44,700 31,500 $ 37,600 Net income