Gemini Incorporated reported current assets of $15,000 and current liabilities of $12,000 on its December 31, 1996, balance sheet. After examining the financial records, the auditor discov¬ ered that the following items had either been ignored or were mistakenly recorded in the books. 1. An inventory purchase of $1,600, which was in transit as of December 31 and shipped FOB shipping point, was not recorded. The purchase was made on account. 2. An inventory purchase of $1,700, which was in transit as of December 31 and shipped FOB destination, was recorded. The purchase was made on account. 3. An $800 installment payment on a long-term note payable, due on March 15, 1997, was not included as current. The entire liability was included as long-term. 4. Short-term payables in the amount of $2,100 were listed as current even though they were part of a line of credit that will allow them to be immediately refinanced with long-term liabilities, which management intended to do, when they become due. Chapter lO Economic Consequences, Current Liabilities, and Contingencies 513 REQUIRED: Compute the amounts needed in the following chart by indicating the effect of each listed item on current assets and current liabilities. Compute Gemini’s current ratio after the adjustments. Current Assets Current Liabilities $15,000 $12,000 1. 2, 3. 4. _ _