Sparky, Inc. follows a calendar-year end. Its financial statements for the years 2018 and 2017 contained errors as follows:

• Ending Inventory for 2017 was understated by $18,000
• Ending Inventory for 2018 was overstated by $33,000

No correcting entries were made at December 31, 2018. Determine the following:

a. Indicate the effect on 2018 Net Income (ignore taxes. Indicate O for Overstated; U for Understated; or NE for No Error. If your answer is overstated by $4,000, record your answer as O4000.)

b. Indicate the effect on 2018 Ending Retained Earnings (enter your answer same as above).

Effect on 2018 Net Income	Effect on Ending Retained Earnings at December 31, 2018
$	$