Exercise 8-25 At December 31, 2016, Novak Corporation reported current assets of $358,170 and current liabilities of $190,300. The following items may have been recorded incorrectly. 1. Goods purchased costing $19,960 were shipped f.o.b. shipping point by a supplier on December 28. Novak received and recorded the invoice on December 29, 2016, but the goods were not included in Novak's physical count of inventory because they were not received until January 4, 2017 2. Goods purchased costing $14,800 were shipped f.o.b. destination by a supplier on December 26. Novak received and recorded the invoice on December 31, but the goods were not included in Novak'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 Novak's December 31, 2016, physical count of inventory at $12,340 4. Freight-in of $2,740 was debited to advertising expense on December 28, 2016 Compute the current ratio based on Novak's balance sheet. (Round ratio to 2 decimal places, e.g. 2.31.1.) The current ratio LINK TO TEXT Recompute the current ratio after corrections are made. (Round ratio to 2 decimal places, e.g. 2.31:1.) LINK TO TEXT 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 LINK TO TEXT