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Petunia Inc. has the following statement of financial position information available: Current Assets Cash Accounts Receivable Inventory $25.000 105.000 120.000 Current Liabilities Accounts Payable Accrued
Petunia Inc. has the following statement of financial position information available: Current Assets Cash Accounts Receivable Inventory $25.000 105.000 120.000 Current Liabilities Accounts Payable Accrued Liabilities Deferred Revenue $80.000 65.000 15.000 The inventory and accounts payable accounts are overstated by $25,000. What is Petunia's actual current ratio and what was the impact of the inventory error on the current ratio calculation? (round to 2 decimal places) 1.67 Understated 1.67 Overstated 1.56 Overstated 1.56 Understated
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