The current assets and current liabilities sections of the statement of financial position of Riverbed Corp. are as follows: RIVERBED CORP. Statement of Financial Position (partial) December 31, 2020 Cash $45,000 $66,000 Accounts payable Notes payable Accounts receivable $93,000 73,000 Allowance for doubtful accounts 7,900 85,100 Inventory 214,750 Prepaid expenses 9,600 $354,450 $139,000 The following errors have been discovered in the corporation's accounting: 1. January 2021 cash disbursements that were entered as at December 2020 included payments of accounts payable in the amount of $38,000. 2. The inventory balance is based on an inventory count that included $31,000 of merchandise that was received at December 31 but with no purchase invoices received or entered. Of this amount, $12,000 was received on consignment; the remainder was purchased f.o.b. destination. 3. Sales for the first four days of January 2021 in the amount of $35,000 were entered in the sales book as at December 31, 2020. Of these, $23,500 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2021 and entered as at December 31, 2020, totalled $38,324. Of this amount, $25,774 was received on account; the remainder was proceeds on a bank loan. (the amount owed to the bank for January 2021 was included as part of the Notes Payable account.) Restate the statement of financial position's current assets and current liabilities sections. (Assume that both accounts receivable and accounts payable are recorded gross.) (List Current Assets in order of liquidity. Round answers to 0 decimal places, e.g. 5,752.) RIVERBED CORP. Partial Statement of Financial Position December 31, 2020 Current Assets Cash Accounts Receivable Less : Allowance for Doubtful Accounts oubtful Accounts 79008 Inventory Prepaid Expenses 9600 Prepaid Expenses Total Current Assets Total Current Assets Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Calculate the current ratio before and after the corrections prepared in part (a). (Round answers to 2 decimal places, e.g. 52.75.) Before Restatement Restated Current ratio eTextbook and Media List of Accounts Your answer is correct. Did the changes improve or worsen this ratio? Current ratio, after corrections (worsened || e Textbook and Media List of Accounts - Your answer is partially correct. Calculate the net effect of your adjustments on Riverbed Corp.'s retained earnings balance. Retained earnings balance (decreased 4) by $ |