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Crane, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows: 2018 2017 Ending inventory $8000 overstated
Crane, Inc. is a calendar-year corporation. Its financial statements for the years 2018 and 2017 contained errors as follows:
| 2018 | 2017 | |||||
| Ending inventory | $8000 overstated | $23000 overstated | ||||
| Depreciation expense | $5500 understated | $17000 overstated | ||||
Assume that no correcting entries were made at December 31, 2017, or December 31, 2018 and that no additional errors occurred in 2019. Ignoring income taxes, by how much will working capital at December 31, 2019 be overstated or understated?
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