EX 3-22 Effects of errors on financial statements

For a recent year, the balance sheet for The Campbell Soup Company includes accrued
expenses of $579 million. The income before taxes for The Campbell Soup Company for
the year was $1,079 million.
a. Assume the adjusting entry for $579 million of accrued expenses was not recorded at
the end of the year. By how much would income before taxes have been misstated?
b. What is the percentage of the misstatement in (a) to the reported income of $1,079
million? Round to one decimal place.

Answer:
a. $579 million

b. 53.7% ($579 / $1,079)