Toowoomba Irrigation Ltd began operations in the south‐east Queensland region in July 2015. During the annual audit for the year ended 30 June 2020, it was discovered that errors had been made in the annual physical stocktake. Further investigation revealed the following details for the years ended 30 June.

• 2016: Ending inventory was undervalued by $60 000.

• 2017: Ending inventory was overvalued by $15 000.

• 2018: Ending inventory was undervalued by $40 000.
• 2019: Ending inventory was correctly valued.
• 2020: Ending inventory was overvalued by $30 000.

Required

Explain the effects that these errors would have on the profit figure and ending asset balances for each year, and determine the cumulative effect of these errors over the 5‐year period.