EX$.07\mathrm{.}196$

During the taking of its physical inventory on December $31,$ Almond Supplies Company incorrectly counted its inventory as $$545,000$ instead of the correct amount of $$554,000.$

Indicate the effects of the misstatement on Almond Supplies Company's balance sheet and income statement for the year ended December $31.$ For those boxes in which you must enter

understatements or negative numbers use a minus sign.

Almond Supplies Company

Amount of Misstatement

Overstatement

$($Understatement$)$

For the year ended

December $31$

Balance Sheet:

Income statement:

$4$