Le Coque Sportswear is a catalog merchant in France-similar to L. L. Bean and Lands' End in the United States. The company's assets consist mainly of inventory, a warehouse, and automated shipping equipment. Assume that early in year \(1 \mathrm{Le}\) Coque purchased equipment at a cost of 3 million francs (F 3 million). Management expects the equipment to remain in service six years. Because the equipment is so specialized, estimated residual value is negligible. Le Coque uses the straight-line depreciation method. Through an accounting error, Le Coque accidentally expensed the entire cost of the equipment at the time of purchase. The company is family-owned and operated as a partnership, so it pays no income tax.

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Prepare a schedule to show the overstatement or understatement in the following items at the end of each year over the six-year life of the equipment.

1. Total current assets 4. Owners' equity 2. Equipment, net 5. Debt ratio (Total liabilities/ Total assets)

3. Net income