At December 31, 2019,LisaAndersonCorporation reported current assets of $380,540and current liabilities of $213,700. The following items may have been recorded incorrectly.

1.Goods purchased costing $20,870were shipped f.o.b. shipping point by a supplier on December 28.Andersonreceived and recorded the invoice on December 29, 2019, but the goods were not included inAnderson's physical count of inventory because they were not received until January 4, 2020.2.Goods purchased costing $15,010were shipped f.o.b. destination by a supplier on December 26.Andersonreceived and recorded the invoice on December 31, but the goods were not included inAnderson's 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 inAnderson's December 31, 2019, physical count of inventory at $11,840.4.Freight-in of $3,180was debited to advertising expense on December 28, 2019.

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

The current ratioenter the current ratio rounded to 2 decimal places

:1

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

The current ratioenter the current ratio rounded to 2 decimal places

:1

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

Adjust Income$

enter a dollar amount of the adjustment