Effet on income 037 1. If inventory is overstated by $200,000 and accounts payable are understated by 5under or overstatement of income)? 0 gut S50,000; what is the effect on income before taxes (S amount and whether a net 7090% 159006 2. If inventory is overstated by $400,000 and accounts payable are overstated by S20,000; what is the effect on income before taxes (S amount and whether a net under or overstatement of income)? ool