Prepare correct income statements. E6.11 (Q3), AN Financial Statement m Smart Watch Company reported the following income statement data for a 2-year period. 2022 2021 Sales revenue $250,000 $220,000 Cost of goods sold Beginning inventory 44,000 32,000 Cost of goods purchased 202,000 173,000 Cost of goods available for sale 246,000 205,000 Ending inventory 52,000 44,000 Cost of goods sold 194,000 161,000 Gross prot W W Smart uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct. However, the ending inventory at December 31, 2021, was overstated $6,000. Instructions a. Prepare correct income statement data for the 2 years. b. What is the cumulative effect of the inventory error on total gross prot for the 2 years? 0. Explain in a letter to the president of Smart Watch Company what has happened, that is, the' nature of the error and its effect on the nancial statements