Seles Hardware Limited reported the following amounts for its cost of goods sold and merchandise inventory:

2012	2011
Cost of goods sold	$170,450	$156,010
Ending inventory	38,050	32,740

Seles made two errors: (1) ending inventory for 2012 was overstated by $2,460 and (2) ending inventory for 2011 was understated by $7,076.

Calculate the correct ending inventory and cost of goods sold amounts for each year.

2011	2012
Ending inventory	$	$
Cost of goods sold	$	$

Describe the impact of the error on (1) cost of goods sold, (2) profit before income tax, (3) assets, (4) liabilities, and (5) total shareholders equity for each of the two years.

2012	2011
(1)	Cost of goods sold		$		$
(2)	Profit before income tax		$		$
(3)	Assets		$		$
(4)	Liabilities		$		$
(5)	Total shareholders equity		$		$