A firm has a current ratio greater than $1\mathrm{.}0.$ If the firm's ending inventory is understated by $$3,000$ and beginning inventory is overstated by $$5,000,$ the firm's net income $($before taxes$)$ and current ratio will be:

$$Net Income $$ Current Ratio

$$understated by $$2,000$too low

$$overstated by $$2,000$too low

$$understated by $$8,000$too low

$$understated by $$8,000$too high

Question $5$ options:

Option D

Option C

Option B

Option A