Comeau Is a Distributor of Sports Equipment, Specializing in Ski

Comeau is a distributor of sports equipment, specializing in ski equipment.During the preparation of the 2013 financial statements they discovered that the following errors had been made in accounting for inventory.
For each of the following errors, indicate the effect on the 2013 financial statement element or ratio in the table below.Indicate whether the element or ratio would be overstated (O) (higher than it would have been had the error not occurred) or understated (U) or not affected (NA) by the error.
Comeau uses a periodic inventory system and applies the lower of cost or market rule on an item-by-item basis.The initial ratios before considering the adjustments are shown in the table.
Errors:
A) Comeau sponsors a demonstration team that tours to different ski resorts on the weekends to promote the products.They carry some inventory with them in a van.The equipment in the van was not included in the inventory count.
B) Each member of the demonstration team gets to select a full set of equipment for their personal use during the season and gets to keep it at the end of the season.The cost of this equipment was included in cost of goods sold.
C) Inventory included some equipment from last year that they had been unable to sell.The equipment is still recorded at cost, although management does admit that it is probably worth less than that.
D) For the equipment that is in their showroom the person that counted it recorded it at its suggested selling price because that was the amount indicated on the label describing the products. $\begin{array}{lllllll}&\text { Net } & \text { Cost of } & \text { Total } & \text { Current } & \text { Inventory } & \text { Debt-to- } \\&\text { Income } & \text { Sales } & \text { Assets } & \text { Ratio } & \text { Turnover } & \text { Equity }\\&&&&1.4:1&3.3&.55:1\\\text { A. } &\\\text { B. } &\\\text { C. } &\\\text { D. } & \\\end{array}$