Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed. Also indicate if the amounts are overstated or understated.

Heathcote Inc. reported cost of goods sold as follows (10 points): Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 2018 $ 54,000 847,000 901,000 64,000 $837,000 2019 $ 64,000 891,000 955,000 55,000 $900,000 Jim Holt, the bookkeeper, made two errors: (1) 2018 ending inventory was overstated by $10,000. (2) 2019 ending inventory was understated by $15,000. Instructions Assuming the errors had not been corrected, indicate the dollar effect that the errors had on the items appearing on the financial statements listed below. Also indicate if the amounts are overstated (O) or understated (U). 2018 2019 Overstated/ Over/ Amount Understated Amount Under Total assets $ $ Stockholder's equity $ $ $ Cost of goods sold $ Net income $ $