12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2010 Ending Inventory$3,000 overstated$8,000 overstated $2,000 understated$6,000 overstated 2011 Depreciation Expense Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012. Ignoring income taxes, by how much will working capital at December 31, 2012 be overstated or understated? a. $0 b. $2,000 overstated c. $2,000 understated d. $5,000 understated

Question
12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and
2010 contained errors as follows:
2010
Ending Inventory$3,000 overstated$8,000 overstated
$2,000 understated$6,000 overstated
2011
Depreciation Expense
Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and
that no additional errors occurred in 2012. Ignoring income taxes, by how much will working
capital at December 31, 2012 be overstated or understated?
a. $0
b. $2,000 overstated
c. $2,000 understated
d. $5,000 understated
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12. Casillas, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows: 2010 Ending Inventory$3,000 overstated$8,000 overstated $2,000 understated$6,000 overstated 2011 Depreciation Expense Assume that no correcting entries were made at December 31, 2010, or December 31, 2011 and that no additional errors occurred in 2012. Ignoring income taxes, by how much will working capital at December 31, 2012 be overstated or understated? a. $0 b. $2,000 overstated c. $2,000 understated d. $5,000 understated

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