Please show formulas and work. please use excel format.

E7-19 (Algo) Analyzing and Interpreting the Impact of an Inventory Error LO7-7 Grants Corporation prepared the following two income statements (simplified for illustrative purposes): First Quarter $ 12,202 Second Quarter $19,900 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income $ 3,800 3,300 7,100 3,700 $ 3,700 12,900 16,600 9,000 3,400 8,800 4,000 $ 4,800 7,600 12,300 5,500 $ 6,800 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,220. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. Complete this question by entering your in the tabs below. Reg 1 and 2 Req3 Req 4 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 1. Effect on combined pretax income 2. Quarter(s) E7-19 (Algo) Analyzing and Interpreting the Impact of an Inventory Error LO7-7 Grants Corporation prepared the following two income statements (simplified for illustrative purposes): First Quarter $ 12,200 Second Quarter $19,900 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income $ 3,800 3,300 7,100 3,700 $ 3,700 12,90 16,600 9,000 3,400 8,888 4,000 $ 4,800 7,600 12,300 5,500 $ 6,800 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,220. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req3 Req4 Prepare corrected income statements for each quarter. First Quarter Second Quarter Cost of goods sold: Goods available for sale 0 0 Cost of goods sold E7-19 (Algo) Analyzing and Interpreting the Impact of an Inventory Error LO7-7 Grants Corporation prepared the following two income statements (simplified for illustrative purposes): First Quarter $ 12,200 Second Quarter $19,900 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income $ 3,800 3,300 7,100 3,700 $ 3,700 12,900 16,600 9,000 3,400 8,888 4, eee $ 4,800 7,600 12,300 5,500 $ 6,800 During the third quarter, it was discovered that the ending inventory for the first quarter should have been $4,220. Required: 1. What effect did this error have on the combined pretax income of the two quarters? 2. Which quarter's or quarters' (if any) EPS amounts were affected by this error? 3. Prepare corrected income statements for each quarter. 4. Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. Complete this question by entering your answers in the tabs below. Req 1 and 2 2 Req3 Req4 Prepare the schedule to reflect the comparative effects of the correct and incorrect amounts on the income statement. 1st Quarter Incorrect Correct $ 3,800 $ 3,800 2nd Quarter Correct Incorrect Error Error No error 9,000 9,000 No error Beginning inventory Ending inventory Cost of goods sold Gross profit Pretax income