Exercise 8-25 At December 31, 2016, Buffalo Corporation reported current assets of $344,340 and current liabilities of $192,700. The following items may have been recorded incorrectly. 1. Goods purchased costing $21,090 were shipped f.o.b. shipping point by a supplier on December 28. Buffalo received and recorded the invoice on December 29, 2016, but the goods were not included in Buffalo's physical count of inventory because they were not received until January 4, 2017 2. Goods purchased costing $16,010 were shipped f.o.b. destination by a supplier on December 26. Buffalo received and recorded the invoice on December 31, but the goods were not included in Buffalo's 2016 physical count of inventory because they were not received until January 2, 2017 3. Goods held on consignment from Claudia Kishi Company were included in Buffalo's December 31, 2016, physical count of inventory at $12,250. 4. Freight-in of $3,190 was debited to advertising expense on December 28, 2016. Your answer is correct. Compute the current ratio based on Buffalo's balance sheet. (Round ratio to 2 decimal places, o.g. 2.31:1) The current ratio 1.791 LINK TO TEXT Your answer is incorrect. Try again. Recompute the current ratio after corrections are made. (Round ratio to 2 decimal places, e.g. 2.31:1.) The current ratic Your answer is incorrect. Try again. By what amount will income (before taxes) be adjusted up or down as a result of the corrections? Assume that goods are sold in item #4. Adjust Income