Hi could someone explain me this question. Not just give me the answer. Thank you very much!

Question 7 Adon Electronics Co. reported the following amounts in its financial statements: (a) Goods available for sale (b) Cost of Goods Sold (c) Net Income (d) Total Current Assets (e) Shareholders' Equity Financial Statement for Year Ended Dec. 31 2018 2019 $ 2,750,000 $ 1,650,000 650,000 545,000 85,000 92,000 712,000 875,000 960,000 1,365,000 During 2019, the following errors were discovered: 1. Inventory counting errors as follows: (a) Inventory on Dec. 31, 2017: understated $20,000 (b) Inventory on Dec. 31, 2018: overstated 65,000 2. $32,000 of merchandise inventory purchased on December 20, 2019 was shipped FOB destination and received on January 6, 2020. It was not included in the inventory on December 31, 2019 since it was not physically in the warehouse during the inventory count. 3. Inventory on Dec. 31, 2019 includes $25,000 worth of consignment goods from one of their suppliers in China. Required: For each of the preceding financial statement items - (a), (b), (c), (d) and (e) - prepare a schedule and show the adjustments that would have been necessary to correct the reported amounts