Madison river supply co. sells canoes, kayaks, whitewater rafts, and other boating supplies. during the taking of its physical inventory on december 31, 20y8, madison incorrectly counted its inventory as $545,000 instead of the correct amount of $555,400. a. state the effects of the error on the december 31, 20y8, balance sheet of madison river supply.

Due to the error in the recording of correct amount of inventory the ,at the end of Madison river supply balance sheet , the inventory , current assets, total assets and shareholders equity would be understated by $10,400.

Now due to the error in recording correct amount of inventory , in the balance sheet it will be shown as understated by $10,400 ( $555,400 - $5454,000 ) , now because of this the current assets would become understated by the same amount as inventory comes under the current assets.

Since current assets are understated , the total assets of the company would also be understated and so do shareholders equity as the net income has decreased because of the increase in cost of goods sold.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.