Question: It is discovered in 2018 that ending inventory in 2016 was understated. What is the effect of the understatement on the following? 2016: .............. Cost

It is discovered in 2018 that ending inventory in 2016 was understated. What is the effect of the understatement on the following?
2016: .............. Cost of goods sold
Net income
Ending retained earnings
2017: .............. Net purchases
Cost of goods sold
Net income
Ending retained earnings

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