Develop the expected amounts for 20X4 for each of the income statement items
(based on what she believes in 1-6 above). Uden’s unaudited financial
statements for the current year show a 31 percent gross profit rate. Assuming
that this represents a misstatement from the amount that you developed as an
expectation, calculate the estimated effect of this misstatement on net income
before taxes for 20X4.
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