Spears & Cantrell announced inventory had been overstated

14. 14.00 points value Spears & Cantrell announced inventory had been overstated by $90 at the end of its second quarter. The error wasn't discovered and corrected in the company's periodic inventory system until after the end of the third quarter. The following table shows the amounts that were originally reported by the company Q3 Q2 $4,000 $4,500 $4,900 Q1 Net Sales Cost of Goods Sold 2,800 3,060 3,520 Gross Profit $1,200 $1,440 $1,380 Required: 1. Restate the income statements to reflect the correct amounts after fixing the inventory error SPEARS & CANTRELL COMPANY Income Statements (Corrected) a1 02 03 Net Sales Cost of Goods Sold Gross Profit