7. Determine the effect on net income for the following situations: 1) Ending inventory overstated $5,000 2) Ending inventory understated $5,000 3) Beginning inventory overstated $5,000 4) Beginning inventory understated $5,000 8. During year 2, Rand Co. purchased $960,000 of inventory. The cost of goods sold for year 2 was $900,000, and the ending inventory at December 31, year 2, was $180,000. What was the inventory turnover for year 2