At December 31, 2019, Jennifer Davis Corporation reported current assets of $379,210 and current liabilities of $204,100. The following items may have been recorded incorrectly.

1.		Goods purchased costing $22,120 were shipped f.o.b. shipping point by a supplier on December 28. Davis received and recorded the invoice on December 29, 2019, but the goods were not included in Daviss physical count of inventory because they were not received until January 4, 2020.
2.		Goods purchased costing $14,170 were shipped f.o.b. destination by a supplier on December 26. Davis received and recorded the invoice on December 31, but the goods were not included in Daviss 2019 physical count of inventory because they were not received until January 2, 2020.
3.		Goods held on consignment from Claudia Kishi Company were included in Daviss December 31, 2019, physical count of inventory at $13,760.
4.		Freight-in of $2,750 was debited to advertising expense on December 28, 2019.

(a)

Incorrect answer iconYour answer is incorrect.

Compute the current ratio based on Daviss balance sheet. (Round ratio to 2 decimal places, e.g. 2.31:1.)

The current ratio ?

Recompute the current ratio after corrections are made. (Round ratio to 2 decimal places, e.g. 2.31:1.)

By what amount will income (before taxes) be adjusted up or down as a result of the corrections? Assume that goods are sold in item #4