Banta Tile & Marble Corporation reported the following comparative income statements for the years ended November 30, 2018, and 2017:

Banta’s president and shareholders are thrilled by the company’s boost in sales and net income during 2018. Then the accountants for the company discover that ending 2017 inventory was understated by $8,500. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Banta really perform in 2018 as compared with 2017?

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A1 Banta Tile & Marble Corporation Income Statements 1 For the Years Ended November 30, 2018 and 2017 2 3 Sales revenue 4 Cost of goods sold: 2018 2017 $ 138,000 $ 125,000 Beginning inventory $ 15,000 78,000 93,000 (18,500) $ 14,500 66,000 80,500 (15,000) 5 Net purchases 6. Cost of goods available Ending inventory Cost of goods sold 74,500 63,500 31,000 $ 32,500 65,500 59,500 29,000 $ 30,500 9. 10 Gross profit 11 Operating expenses 12 Net income 13