Effect of errors in physical inventory Madison River Supply Co. sells canoes, kayaks, whitewater rafts, and other boating supplies. During the taking of its physical inventory on December 31, 2048, Madison incorrectly counted its inventory as $678,000 instead of the correct amount of $687,000. Enter all amounts as positive numbers. a. State the effects of the error on the December 31, 20Y8, balance sheet of Madison River Supply. Balance Sheet Items Understated/Overstated Amount Inventory Understated $ Current Assets Understated $ Total Assets Understated $ Stockholders' Equity Understated b. State the effects of the error on the income statement of Madison River Supply for the year ended December 31, 20Y8. Income Statement Items Amount Overstated/Understated Overstated Cost of Goods Sold $ Gross Profit Understated $ Net Income Understated $ c. If uncorrected, what would be the effects of the error on the 2049 income statement? Income Statement Items Overstated/Understated Amount Cost of Goods Sold Understated Gross Profit Overstated $ Net Income Overstated $