Presented below is information related to Meghani Company.

Date	Ending Inventory (End-of-Year Prices)	Price Index
December 31, 2014	$180,000	100
December 31, 2015	220,500	105
December 31, 2016	218,500	115
December 31, 2017	242,500	125
December 31, 2018	283,500	135
December 31, 2019	310,800	140

Instructions

Compute the ending inventory for Meghani Company for 2014 through 2019 using the dollar-value LIFO method.

Burgess Company makes the following errors during 2017.

Ending inventory is understated, but purchases are recorded correctly.

Ending inventory is correct, but a purchase on account for 2017 was recorded in 2018.

Both ending inventory and purchases on account are understated for 2017. (Assume the purchase was recorded in 2018.)

Instructions

Indicate the effect of each of these errors on working capital, current ratio (assume that the current ratio is greater than 1), retained earnings, and net income for 2017 and 2018.