$1.$ Overstating the ending inventory balance will result in an understatement of the cost of goods sold balance$\mathrm{.}2.$ An overstatement of the ending inventory balance will increase net operating income for the period$\mathrm{.}3.$ Understating the ending inventory balance will result in an understatement of the cost of goods sold balance$\mathrm{.}4.$ An understatement of the ending inventory balance will decrease net operating income for the period.