P5-45A. Inventory errors (Learning Objective 6) 20-25 min. A & R industrial Supply shows the following financial statement data for 200 and 2010. Prior to issuing the 2010 statements, auditors found that the endin , inventory for 2008 was understated by $8,000 and that the ending in was overstated by $9,000. The ending inventory at December 31, 2009, was onos or 2010 2009 2008 2010 (In thousands) Sales Revenue Cost of Goods Sold: $210 $191 $186 Beginning Inventory 12 Net Purchases Cost of Goods Available 155 Ending Inventory Cost of Goods Sold 121 139 12 128 143 18 143 16 Gross Profit Operating Expenses Net Income 139 71 46 $ 25 127 64 43 125 61 42 s 19 Inventory 279 Requirements 1. Stat 2. 3. What is the impact on the 2010 income statement if the 2008 inventory error e whether each year's net income before corrections is understated or overstated and indicate the amount of the understatement or overstatement. Prepare corrected income statements for the three years. is left uncorrected