The books of Hayes Windows and Siding show these data (in thousands):

In early 2018, a team of Canada Revenue Agency auditors discovered that the ending inventory of 2015 had been overstated by $5 thousand. Also, the ending inventory for 2017 had been understated by $7 thousand. The ending inventory at December 31, 2016, was correct.
Required
1. Show corrected comparative income statements for the three years.
2. State whether each year's net income as reported here and the related owner's equity amounts are understated or overstated. For each incorrect figure, indicate the amount of the understatement or overstatement.

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2017 2016 2015 Net sales revenue $410 $345 $320 Cost of goods sold: Beginning inventory Net purchases Cost of goods available for sale Less: Ending inventory Cost of goods sold $ 49 146 195 52 $ 41 101 142 49 S 52 98 150 41 Gross margin Operating expenses Net income 143 267 109 $158 93 252 102 $150 109 211 74 $137