Question #1 (30 marks) The summary financial statements of Pedro Ltd on December 31, 2018, are as follows: Cash $ 5,000 A/R 39,000 Inventory 79,000 PPE, net 125.000 Total $248,000 A/P LT-debt C/S R/E Total $ 75.000 62,000 60,000 51,000 $248,000 The following errors were made by an inexperienced accountant on December 31, 2018: The inventory was understated by $17,000. Accrued December 2018 salaries of $1,800 were not recognized. Unearned revenue of $2,300 was recorded in the 2018 revenue. In addition, it was determined that $20,000 of A/P were long-term, and that a $500 dividend was reported as dividend expense and deducted in calculating NI. Required: a. C. Calculate WK, current ratio, and debt-to-equity ratio (TL/TE] for Pedro Ltd., based on the original B/S information provided above. (3 marks) b. Calculate the corrected NI for 2018 (9 marks) Calculate the corrected R/E for December 31, 2018 (5 marks) d. Prepare a corrected B/S at December 31, 2018 (8 marks) e. Using the corrected data, recalculate the rations in part (a). Explain the resulting differences