Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:

	Quarter 1		Quarter 2		Quarter 3		Quarter 4
Net Sales	$	90,000	$	89,000	$	110,000	$	98,000
Cost of Goods Sold		36,000		40,050		39,550		38,220
Gross Profit	$	54,000	$	48,950	$	70,450	$	59,780

After these amounts were reported, M & Ms accountant determined that the inventory at the end of Quarter 2 was understated by $4,450. 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