Response to the following problem:
Quirk Hospital made inventory errors as follows:
• December 31, 20X1 inventory overstated by $400
• December 31, 20X1 inventory understated by $100
Required:
1) By what amount was the hospital's 20X2 excess of revenues over expenses overstated or understated due to these errors?
(2) By what amount were the hospital's net assets (fund balance) overstated or understated at December 31, 20X2 due to these errors?