Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts: Net Sales Cost of Goods Sold Quarter 1 Quarter 2 Quarter 3 Quarter 4 80,000 $ 79,000 $100,000 $ 88,000 52,000 55,300 61,05056,320 Gross Profit $28,000 $ 23,700 S 38,950 $ 31,680 After these amounts were reported, M & M's accountant determined that the inventory at the end of Quarter 2 was understated by $3,950. The inventory balance at the end of the other three quarters was accurately stated. Required 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. MURPHY & MURPHY COMPANY Partial Income Statements (Corrected) Quarter 1 Quarter 2 Quarter 3 Quarter 4 Net Sales Cost of Goods Sold Gross Profit