E$8\mathrm{.}25($LO $4)($Inventory Errors$)$ At December $31,2019,$ Stacy McGill Corporation reported current assets of $$370,000$ and current liabilities of $$200,000.$ The following items may have been recorded incorrectly.

Goods purchased costing $$22,000$ were shipped f$.$o$.$b$.$ shipping point by a supplier on December $28.$ McGill received and recorded the invoice on December $29,2019,$ but the goods were not included in McGill's physical count of inventory because they were not received until January $4,2020.$

Goods purchased costing $$15,000$ were shipped f$.$o$.$b$.$ destination by a supplier on December $26.$ MeGill received and recorded the invoice on December $31,$ but the goods were not included in McGills $2019$ physical count of inventory because they were not received until January $2,2020.$

Goods held on consignment from Claudia Kishi Company were included in McGill's December $31,2019,$ physical count of inventory at $$13,000.$

Freight$-$in of $$3,000$ was debited to advertising expense on December $28,2019.$

Instructions

a$.$ Compute the current ratio based on McGill's balance sheet.

b$.$ Recompute the current ratio after corrections are made.

c$.$ By what amount will income $($before taxes$)$ be adjusted up or down as a result of the corrections?