Dijon Mustard Ltée. reported the following comparative income statement for the years ended September 30, 2016 and 2017:

Dijon's shareholders are thrilled by the company's boost in sales and net income during 2017. Then they discover that the 2016 ending inventory was understated by $10,000. How well did Dijon really perform in 2017, as compared with 2016?

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Dijon Mustard Ltée. Income Statement 2 For the Years Ended September 30 2017 2016 3 Sales revenue 4 Cost of goods sold $ 194,000 Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold 23,000 7,000 120,000 (21,000) 16,000 ,000 1,000 (23,000) 1 9,000 9,000 20,000 S 59,000 99,000 10 Gross profit 11 Operating expenses 12 Net income 20,000