quarterly financial statements to the stockholders. Now you must send revised statements and a letter of explanation. (a) What effect did the error have on the items of the balance sheet for the retailer? Express your answer as overstated or understated for the items affected by the error. Merchandise inventory was by$ .Therefore,Currentassets,Totalassets,andTotalstockholdersequitywereby$ (b) What effect will the error have on the items of the income statement for the retailer? The cost of goods sold was by$ Therefore,grossprofitandnetincomewereby$ (c) Did this error make the retailer's quarterly results look better or worse than they actually were? The inventory error made the company's quarterly results look than they actually were. Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory (in \$) and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory (in $ ) necessary to come up to industry standards. If the actual turnover is greater than the published rate, enter "above" for target average inventory. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. On January 1, Jackson International has inventory worth $599,900 at cost. At the end of the year, the cost value of the inventory was $173,200. If annual cost of goods sold was $1,409,170, find the inventory turnover at cost for the year. Round your answer to the nearest tenth. D