During the current accounting period, Rose Corp. has made the following errors. Rose uses a perpetual inventory system and has a calendar yearend. Indicate the impact each error (U, O, None for understate, overstate, no effect) would have on the following financial statements components: Show your reasoning as to how you arrived at your conclusions for each error to receive credit. (i.e., the handy household hints)

	Net Income	Total Assets	Total Liabilities	Total Equity	Cash Flows From Operations
1. Neglected to record depreciation at the end of the current period.
2. Recorded purchase of Rose