Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 35

You own Bristol Marine, a retailer of boats, motors, and marine accessories. The store manager has just informed you that the amount of the physical inventory was incorrectly reported as $540,000 instead of the correct amount of $450,000. Unfortunately, yesterday you sent the quarterly financial statements to the stockholders. Now you must send revised statements and a letter of explanation.
a. What effect did the error have on the items of the balance sheet for Bristol Express your answer as overstated or understated for the items affected by the error.
b. What effect will the error have on the items of the income statement for Bristol
c. Did this error make the Bristol quarterly results look better or worse than they actually were