32 - pls use figures to explain

32. During 2014, Paulo Corporation discovered that the ending inventories reported on its y is ial statements were incorrect by the following amounts: 9 2012 $60,000 understated 2013 $75,000 overstated Paulo uses the periodic inventory system to determine year-end quantities that are converted to dollar amounts using the FIFO cost method. Prior to any adjustments for these errors and ignoring income taxes, Paulo's retained earnings at January 1, 2014, would be: a. Correct b. $75,000 overstated 15,000 overstated 135,000 overstated 33. The following information pertains to Dark Company at December 31, 2012: Bank statement balance Company's general ledger cash balance Deposit in transit Outstanding cheques $10,000 14,000 5,000 1,000 (uk har 21 2012 halance sheet. cash should be reported as