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1. You were assigned to conduct the examination of Karen Company financial statement of its calendar year operation. Its financial statements for the year 2017 and 2018 contained errors as follows: 2017 2018 Ending Inventory Php 6,000 understated Php 10,000 overstated Depreciation Expense Php 11,000 overstated Php 7,000 overstated Accrued Expenses Php 4,500 understated Php 7,500 understated Prepaid Expenses Php 5,000 understated Php 12,000 understated Accrued Revenue Php 3,000 understated Deferred Revenue Php 1,200 understated Required: Based on the following, answer the following: 1. What is the total effect of the errors in the 2017 net income? 2. What is the total effect of the errors in the company's working capital at December 31, 2017 3. What is the total effect of the errors on the balance of the company's working capital at December 31, 2018 4. What is the total effect of the errors on the balance of the company's retained earnings at December 31, 2018