Spears & Cantrell announced inventory had been overstated by $60 at the end of its second quarter. The error wasn't discovere corrected in the company's periodic inventory system until after the end of the third quarter. The following table shows the amou that were originally reported by the company. Net Sales Cost of Goods Sold Gross Profit 01 $3,800 2,660 $ 1,140 02 $ 4,400 3,020 $ 1,380 03 $ 4,800 3,420 $ 1,380 Required: 1. Restate the income statements to reflect the correct amounts, after fixing the inventory error. 2-a. Compute the gross profit percentage for each quarter (a) before the correction and (b) after the correction. 2-b. Do the results lend confidence to your corrected amounts? Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Restate the income statements to reflect the correct amounts, after fixing the inventory error. SPEARS & CANTRELL COMPANY Income Statements (Corrected) Q1 02 03 Net Sales $ 3,800 $ 4,400 $ 4,800 Cost of Goods Sold 2,660 Gross Profit $ 1.140 3,020 $ 1,320 3,420 $1,440