The summary financial statements of Langford Landscaping Ltd. on December 31, 2017, are as follows:

The following errors were made by the inexperienced accountant on December 31, 2016, and were not corrected.
1. The inventory was overstated by $13,000.
2. A prepaid expense of $2,400 was omitted. (It was fully expensed in 2016.)
3. Accrued revenue of $2,500 was omitted. (It was recognized when cash was received in 2017.)
4. A supplier's invoice for $1,700 for purchases made in 2016 was not recorded until 2017.
On December 31, 2017, there were further errors:
5. The inventory was understated by $17,000.
6. A prepaid expense of $750 was omitted.
7. Accrued December 2017 salaries of $1,800 were not recognized.
8. Unearned income of $2,300 was recorded in the 2017 revenue.
9. In addition, it was determined that $20,000 of the accounts payable were long-term, and that a $500 dividend was reported as dividend expense and deducted in calculating net income.
The net income reported on the books for 2017 was $53,000.
Instructions
(a) Calculate the working capital, current ratio, and debt to equity ratio for Langford Landscaping Ltd. based on the original balance sheet information provided above.
(b) Calculate the corrected net income for 2017.
(c) Prepare a corrected balance sheet at December 31, 2017.
(d) Using the corrected data, recalculate the ratios in part (a). Explain the resulting differences in the ratios as a result of the use of the corrected data.

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LANDFORD LANDSCAPING LTD. Balance Sheet, December 31, 2017 Assets Cash Accounts and notes receivable Inventory Property, plant, and equipment (net) $5,000 39,000 79,000 125,000 $248,000 Liabilities and Shareholders' Equity Accounts and notes payable Long-term debt Common shares Retained earnings $ 75,000 62,000 60,000 51,000 $248,000