Great Foods Grocery reported the following comparative income statement for the years ended June 30, 2012 and 2011: During 2012,
During 2012, Great Foods discovered that ending 2011 inventory was overstated by $4,500.
1. Prepare corrected income statements for the two years.
2. State whether each years net incomebefore your correctionsis understated or overstated and indicate the amount of the understatement oroverstatement.
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