Healthy Bite Mart reported the following comparative income statement for the years ended November 30, 2014 and 2013.

During 2014, Healthy Bite Mart discovered that the 2013 ending inventory, as previously reported, was understated by $2,500.
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 your answer.

Healthy Bite Mart Comparative Income Statements For the Years Ended November 30, 2014 and 2013 2014 Sales Revenue Cost of Goods Sold $137,000 $120,000 Beginning Inventory Net Purchases Cost of Goods Available Ending Inventory Cost of Goods Sold $15,500 70,000 85,500 18,500 $11,000 69,000 80,000 15,500 Gross Profit Operating Expenses Net Income 67,000 70,000 24,000 $ 46,000 64,500 55,500 20,000 S 35,500