Example: A companys Dec. 31st year-end balance sheet showed $72,000 of inventory. The companyuses the perpetual inventory system. After reviewing the companys records, the auditor noted thefollowing items which had not been included when calculating this amount because it was not in thewarehouse during the physical count: On Dec. 31st the company was notified that $12,600 of inventory purchased from a wholesalerhad been shipped on Dec. 30th, FOB shipping point. On Dec. 31st, inventory costing $5,200 was shipped to a customer in Australia FOB destination.Sales Revenues were recorded at 50% mark-up on cost. On Dec. 31st, inventory costing $14,000 was shipped to a customer FOB shipping point. SalesRevenues were recorded at 50% mark-up on cost.

I have Assets overstated by 1,400 liabilities OK Equity understated by 21,000 and Net Income understated by 21,000. Is that correct?