Exercise 22 18 Indigo Toal Company's December 3t year end financial statements contained the following errors. December 31, 201 December 31, 201 10,500 nlerstated $8,200 overstatel Ending invertory Cepreaatian expen 2,400 underatated A insurance premium cf S 9 U00 was preps d in 2017 cover ng the years 2017, 2013, and 2019. The entire annou t as charged to expense 2 17 Ln eddition orecember J1, 2015, fully deprec sted machinery vas sold for S13 OJ cesh, but the entry was not recorded until 2019. There were ro other errors during 2017 cr 2015, ard no corrections have been made for dny of the error (a) Compute the totl effect ofthe ers on 2018 net ircome. Total effect of errors on net income Ignore income tax oonsderst s (enter e at ve anoe nts using either8 ne atv e 5 preced ng the number e g -15 000 or parentheses e g. (15,000) ) (b) Compute the total effect of the errors on the amount of Indigo's worona capital a December 31, 2018. Total etfect on working capital (c) Compute the total effect of the errors on the balarce of Indigos retsined earnings st December 31, 2018 Tozal effect on retained eamings