4 Click Submit to complete this assessment. Question 27 Use the following information for requirements ab&c Friend Co. began operations on January 1, 2007. Financial statements for 2007 and 2008 contained the following errors: Dec. 31. 2007 Dec. 312003 Ending inventory $132,000 too high $156,000 too low Depreciation expense 84,000 too high Insurance expense 60,000 too low 60,000 too high Prepaid insurance 60,000 too high In addition, on December 31, 2008 fully depreciated equipment was sold for $28,800, but the sale was not recorded until 2009. No cor Requirements provide dollar amounts and the over or understated direction for each item below: a) The total effect of the errors on Friend's 2008 net income is _ b) The total effect of the errors on the balance of Friend's retained earnings at December 31, 2008 is c) The total effect of the errors on the amount of Friend's working capital at December 31, 2008 is E T TT T F Paragraph Arial %DO Q O fx Mashups - nu 3 (12pt) TT, HTML CSS