Simon Granite & Stone Corporation reported the following comparative income statements for the years ended September 30, 2018, and 2017:

Simon’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 $6,000. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Simon really perform in 2018 as compared with 2017?

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A1 Simon Granite & Stone Corporation Income Statements 1 For the Years Ended September 30, 2018 and 2017 2018 2017 2 3 Sales revenue 4 Cost of goods sold: Beginning inventory Net purchases Cost of goods available Ending inventory Cost of goods sold 10 Gross profit 11 Operating expenses 12 Net income $ 121,000 $ 140,000 $ 13,000 78,000 91,000 (16,000) $ 12,000 74,000 86,000 (13,000) 73,000 48,000 19,000 $ 29,000 75,000 65,000 29,000 $ 36,000 13