Waymire Company prepared the partial income statements presented below for 2011 and 2010.

During 2012, Waymire€™s accountant discovered that ending inventory for 2010 had been overstated by $8,200.
Required:
1. Prepare corrected income statements for 2011 and 2010.
2. Prepare a schedule showing each financial statement item affected by the error and the amount of the error for that item. Indicate whether each error is an overstatement (+) or an understatement (€“).

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2011 2010 Sales revenue Cost of goods sold $538,200 $483,700 Beginning inventory Purchases Cost of goods available for sale Ending inventory 39,300 343,200 $ 32,100 292,700 $324,800 $382,500 46,800 335,700(39300 285,500 Gross margin Operating expenses Income before taxes $202,500 167,20 $ 35,300 $198,200 151,600) S 46,600