10 E7-19 (Algo) (Supplement 78) Analyzing and Interpreting the Impact of an Inventory Error (LO 7-S2) Dallas Corporation prepared the following two income statements: oints eBook Sales Revenue Cost of Goods Sold Beginning Inventory Purchase Goods Available for sale Ending Inventory Cost of Goods sold Gross Profit Operating Expenses Income from Operations Pirst Quarter $ 21,500 $ 4,300 8300 12,600 5,300 7,300 14,200 6.300 $ 7,900 Second Quarter $ 25,800 $ 5,300 13,00 18,600 10,300 3,300 17,500 7,300 $ 10.200 Print During the third quarter, the company's Internal auditors discovered that the ending Inventory for the first quarter should have been $6,250. The ending Inventory for the second quarter was correct. Required: 1. What effect would the error have on total income from Operations for the two quarters combined? 2. What effect would the error have on Income from Operations for each of the two quarters? 3. Prepare corrected income statements for each quarter, Ignore income taxes, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What effect would the error have on total income from Operations for the two quarters combined? Two Quarters Combined Required 2 > Mc Graw 3. Prepare corrected income statements for each quarter. Ignore income taxes. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare corrected income statements for each quarter. Ignore income taxes. Dallas Corporation Income Statement (Partial) First Quarter Second Quarter