Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:

After these amounts were reported, M & M's accountant determined that the inventory on
December 31, 2011, was understated by $3,000. The inventory balance on December 31, 2012, was accurately stated.
Required:
1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.
2. Compute the gross profit percentage for all four years both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Explain. Round your answer to the nearest percentage.

Net Sales Cost of Goods Sold Gross Profit 2010 $50,000 32,500 17,500 2011 $49,000 35,000 14,000 2012 $71,000 43,000 28,000 2013 $58,000 37,000 21,000