Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts Quarter $140,00e 56,000 84,000 Quarter $139,000 Quarter $160,000 Net Sales Cost of Goods Sold Gross Profit Quarter 4 $148,000 56, 240 $91,760 62,550 $ 76,450 57,050 102,950 After these amounts were reported, M & Ms accountant determined the inventory at the end of Quarter 2 was understated by $6,950 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. 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the patterrn of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit Net Sales) 100 Complete this question by entering your answers in the tabs below. Required 1 Required 2 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