Effect of Errors in Physical Inventory Madison River Supply Co. sells cances, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2018, Madison Incorrectly counted its inventory as 805330 instead of the correct amount of $829,490 Enteral amounts as positive numbers. State the affects of the emer on the December 31, 2010, balance sheet of Hadisen River Supply Balance Sheet Items Understated/Overstated Understated Amount Inventory Current Assets Total Assets Stockholders Equity Understated Understated Unsterstated b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 2016 Income Statement Items Cost of Goods Sold Gross Profit Net Income Overstated/Understated Overstated Understated Understated Amount c. uncorrected, what would be the effects of the error on the 2019 income statement? Income Statement Items Overstated/Understated Amount Cost of Goods Sold Gross Prof Net Income Understated Overstated Overstated d. If uncorrected, what would be the effects of the error on the December 31, 2019, balance sheet? 1. The balance sheet would be correct, because the 2018 inventory error reverses itself in 2019, 2. The income for 2019 would be understated. 3. The current assets in 2019 would be overstated. The current assets in 2019 would be understated