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 Q1 $3,250 $3,750 $4,000 Q2 Net Sales Cost of Goods Sold 2,210 2,460 2,810 Gross Profit $1,040 $1,290 $1,190 Required 1. Restate the income statements to reflect the correct amounts, after fixing the inventory error. SPEARS & CANTRELL COMPANY Income Statements (Corrected) Q1 Q2 Q3 Net Sales Cost of Goods Sold Gross Profit 2-a. Compute the gross profit percentage for each quarter (a) before the correction and (b) after the correction. (Round your answers to the nearest whole percent.) Q1 Q2 Q3 Before Correction After Correction 2-b. Do the results lend confidence to your corrected amounts? O Yes O No