Current Attempt in Progress

Swifty Limited makes the following errors during the current year. Each error is an independent case.

Ending inventory is overstated by $$1,020,$ but purchases are recorded correctly.

Both ending inventory and a purchase on account are understated by the same amount. $($Assume this purchase of $$1,510$ was

recorded in the following year.$)$

Ending inventory is correct, but a purchase on account was not recorded. $($Assume this purchase of $$910$ was recorded in the

following year.$)$

Indicate the effect of each error on working capital, current ratio $($assume that the current ratio is greater than $1),$ retained earnings,

and net income for the current year and the following year. $($Do not leave any answer field blank. Enter $O$ for amounts.$)$Question $3$ of $7$

Current ratio

Retained earnings

by

$

by

Net income$/($loss$)$

by

Working capital

by

Current ratio

Retained earnings

by

by

Net income$/($loss$)$

by

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