Gomez Auto Parts, Inc., reported the following comparative income statement for the years ended April 30, 2012 and 2011.

During 2012, Gomez Auto Parts, Inc., discovered that the 2011 ending inventory, as previously reported, was overstated by $3,000.

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 youranswer.

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Gomez Auto Parts, Inc. Comparative Income Statements For the Years Ended April 30, 2012 and 2011 2012 2011 Sales Revenue Cost of Goods Sold: $143,000 $119,000 Beginning Inventory Net Purchases Cost of Goods Aailable Ending Inventory Cost of Goods Sold $12,000 79,000 1,000 18,000 $12,500 71,000 83,500 12,000 Gross Proft Operating Expenses Net Income 73,000 70.000 71,500 47,500 23,000