Question: + Add to o 3 X Edit & Create If the ending inventory of a firm is overstated by $54,000, by how much and in
+ Add to o 3 X Edit & Create If the ending inventory of a firm is overstated by $54,000, by how much and in what direction (overstated or understated) will the firm's operating income be misstated? (Hint: Use the cost of goods sold model, enter hypothetically "correct' data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold.) Operating income by
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