The books of Hayes Windows and Siding show these data (in thousands):

In early 2015, a team of Canada Revenue Agency auditors discovered that the ending inventory of 2012 had been overstated by $5 thousand. Also, the ending inventory for 2014 had been understated by $7 thousand. The ending inventory at December 31, 2013, was correct.
Required
1. Show corrected comparative income statements for the three years.
2. State whether each year's net income as reported here and the related owner's equity amounts are understated or overstated. For each incorrect figure, indicate the amount of the understatement or overstatement.

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2014 2012 2013 $245 Net sales revenue Cost of goods sold: Beginning inventory Net purchases Cost of goods available Less: Ending inventory Cost of goods sold Gross margin Operating expenses Net income $310 $220 $ 49 146 $ 41 $ 52 101 142 49 98 150 195 52 41 143 167 93 152 102 $ 50 109 111 109 $ 58 74 $ 37