thats basiclly everything given

The schedule for computing Cost of goods sold (CGS) and the three primary financial statements (Income statement, retained earnings statement and Balance sheet) of ABC company are given in column B of the attached excel spreadsheet. All the account balances entered in column B are the correct amounts for the year 2019. This exercise is intended to help you: (1) Understand how the financial statements articulate (2) Understand what effect errors in ending inventory (under or overstatement) and errors in recording purchases (not recording(understating) or multiple recording(overstating) purchases) will have on the primary financial statements and two primary ratios used to assess the financial liquidity of a company. Note: It is assumed that all purchases are made on account throughout the year and paid at the beginning of the following year. Thus, the balance in the A/P account represents the purchases on account during the year (2019 in this example). (1) Copy Cells B3 to B42 and paste them to cells C3-C42. Change the Ending Inventory number (cell C6 only) to 50,000 and observe how the account balances highlighted in red and/or green change (1.e. how different they are from their counterparts in Column B) and answer the following questions. Please clearly indicate whether the item is over (or understated) by circling or underlying your choice. Please also write the amount of the over (under) statement in the blank space provided. If the item is neither over nor understated, please write NO EFFECT in the blank space provided. 2019 CGS is overstated (or understated) by 2019 Gross profit is overstated (or understated) by 2019 Net income is overstated (or understated) by 2019 Retained earnings is overstated (or understated) by 2019 current assets is overstated (or understated) by 2019 total assets is overstated (or understated) by 2019 current liabilities is overstated (or understated) by 2019 total liabilities is overstated (or understated) by 2019 total stockholders' equity is overstated (or understated) by 2019 working capital is overstated (or understated) by 2019 current ratio is overstated (or understated) by Correct El=40,000 El overstated by 10,000 El understated by 10,000 both El and purchases overstated by 10,000 both El and purchases ui 50,000 90,000 140,000 40,000 100,000 Computation of CGS Beg. Inventory Net purchases Cost of goods available for sale less Ending Inventory Cost of goods sold (CGS) Income Statement Sales CGS Gross Profit Less expenses Net Income Retained Earnings Statement Beginning Retained Earnings Net income Dividends Ending Retained Earnings Balance Sheet 200,000 100,000 100,000 40,000 60,000 20,000 60,000 10,000 70,000 Assets 100,000 40,000 140,000 450.000 590,000 Other Current Assets Inventory Total current assets Total non current assets Total Assets Liabilities Other Current Liabilities A/P Total Total current liabilities Total Non current liabilities Total Liabilities Stockholders' Equity Capital Stock Retained earnings, ending Total Stockholders' equity Total liabilities and stockholders equity Working Capital 40,000 90,000 130,000 250,000 380,000 140,000 70,000 210,000 590,000 10,000