Task 1 The senior accountant has identified three misstatements that have been carried forward onto the summary of proposed audit adjustments. Determine the impact of the identified misstatements on the financial statement ratios noted below. For each of the identified misstatements below, indicate the impact on the financial ratio identified. Select the impact, if any, that the misstatement has on the financial ratio from the option list in the associated columns. Selections may be used once, more than once, or not at all. Consider each misstatement independently. The information in the Analytics Definitions exhibit must be used for all financial ratio calculations. Account Debit Credit Impact on current ratio Impact on profit margin A. Payroll expense 72,000 B. Accrued payroll 72,000 1. Answers for Rows A-B: C. Depreciation expense 125,000 D. Accumulated depreciation 125,000 2. Answers for Rows C-D: E. Prepaid insurance 15,000 F. Insurance expense