Garraway Ski Company mistakenly recorded purchases of inventory on account received during the last week of December 2003 as purchases during January of 2004 (this is called a purchases cutoff error). Garraway uses a periodic inventory system, and ending inventory was correctly counted and reported each year. Assuming that no correction was made in 2003 or 2004, indicate whether each of the following financial statement amounts will be understated, overstated, or correct. 1. Net Income for 2003. 2. Net Income for 2004. 3. Retained Earnings for December 3 1 , 2003. 4. Retained Earnings for December 31, 2004.