Question 1 In line with your audit with DAVE, Inc. financial statements, the company accountant presented to you the balance sheet that follows. You reviewed the client's accounting records and books based thereon. You discovered that books of accounts are in agreement in the said balance sheet as presented below: DAVE, INC. STATEMENT OF FINANCIAL POSITION December 31, 2021 ASSETS LIABILITIES AND OWNERS' EQUITY Cash P 80,000 Accounts Payable P 32,000 Accounts Receivable 160,000 Notes Payable 64,000 Notes Receivable 48,000 Capital Stock 160,000 Inventories 400,000 Retained Earnings 432,000 Total P 688.000 Total P 688,000 Further review and investigation of the company's books revealed the following omissions and errors which were not corrected during the year of errors: 2018 2019 2020 2021 Deferred expense 14,400 11,200 8,000 9,600 Deferred income 6,400 4,800 Accrued expense 3,200 1,200 1,600 BOO Accrued income 2,000 2,400 Ending inventory - Overstated 112,000 128,000 Ending inventory - Understated 96,000 144,000 No dividends were declared during the years 2018 to 2021 and no adjustments were made to retained earnings. The company's reported the following net income