Question #6-Inventory Errors and Estimation (11 marks) Part 1 The income statements (in thousands) for Winnipeg Windows are presented below: 2016 2018 $360 2017 Net sales Cost of goods sold Beginning inventory Net purchases Cost of goods available Less ending inventory Cost of goods sold Gross margin Operating expenses Net income $240 $275 $70 130 200 $65 $55 135 190 195 260 70 55 65 190 170 125 150 145 95 109 72 119 $51 $23 $41 Ending inventory Overstecled by inventory Cundeutated by dol6- 10/000 5000 dots Required: Determine whether each year's net income and owner's equity has been over or understated. Indicate, with support, the amount of any misstatement. (7 marks)