Washington Co. mistakenly omitted $4,000 of merchandise from its inventory on December 31, 2010. Its December 31, 2011, inventory is correct. As a result of this error:
a) earnings per share is overstated for 2010 and overstated for 2011
b) total income for 2010 and 2011 combined is correct
c) the current ratio is overstated on December 31, 2010 and is correct on December 31, 2011
d) ending inventory is understated at December 31, 2011