For questions 1-6, the company uses a periodic inventory accounting system. The analysis of the data collected from the observation of the inventory physical count indicates that some of the company's inventories were double counted. For questions 7-12, the company uses a perpetual inventory accounting system. Marketing and freight-out costs were capitalized to inventory produced during the year. Some of the inventory produced during the year was in ending inventory. For each of the question numbers below state whether it was understated, overstated, or there was no effect. 1. Cash 2. Inventory 3. Cost of Goods Sold 4. Liabilities 5. Sales and Marketing Expenses 6. Net Income 7. Cash 8. Inventory 9. Net Income 10. Liabilities 11. Sales and Marketing Expenses 12. Retained Earnings