Question: It is discovered in 2011 that ending inventory in 2009 was understated. What is the effect of the understatement on the following: 2009: Cost of

It is discovered in 2011 that ending inventory in 2009 was understated. What is the effect of the understatement on the following:

2009: Cost of goods sold
Net income
Ending retained earnings
2010: Net purchases
Cost of goods sold
Net income
Ending retained earnings

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