The current assets and current liabilities sections of the statement of financial position of Agincourt Corp. are as follows:

The following errors have been discovered in the corporations accounting:
1. January 2015 cash disbursements that were entered as at December 2014 included payments of accounts payable in the amount of S3 5 ,000, on which a cash discount of 2% was taken.
2. The inventory included $27,000 of merchandise that was received at December 31 but with no purchase invoices received or entered. Of this amount, $ 10,000 was received on consignment; the remainder was purchased f.o.b. destination, terms 2/10, n/30.
3. Sales for the first four days in January 2015 in the amount of $30,000 were entered in the sales book as at December 31, 2014. Of these, $21,500 were sales on account and the remainder were cash sales.
4. Cash, not including cash sales, collected in January 2015 and entered as at December 31, 2014, totaled $35,324.
Of this amount, $23,324 was received on account after cash discounts of 2% had been deducted; the remainder was proceeds on a bank loan.
Instructions
(a) Restate the statement of financial position's current assets and liabilities sections.
*(b) Calculate the current ratio before and after the corrections prepared in part (a). Did the restatement improve or worsen this ratio?
(c) State the net effect of your adjustments on Agincourt Corp.'s retained earnings balance.
(d) Assume that in February 2015, Agincourt approaches its bank for another bank loan, based on its restated statement of financial position as at December 31, 2014. Also assume that the terms of the new bank loan would require that Agincourt maintain a current ratio of 1.5. As Agincourt's bank manager, discuss the importance of recording the adjustments above and restating the statement of financial position as at December 31, 2014.

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AGINCOURT CORP Statement of Financial Position (partial) December 31, 2014 Cash Accounts receivable Allowance for doubtful accounts 61,000 67,000 $ 40,000 Acounts payable $89,000 Notes payable 7,000 82,000 171,000 9,000 $302,000 $128,000 Inventory Prepaid expenses