In year 1 ending inventory is overstated by $2,000. Explain the effect on cost of goods sold gross profit and net income in year 1 and year 2 Select all answers that apply. Net income in the next year, year 2, will be overstated. Cost of goods sold in the current year, year 1, will be understated. Net income in the next year, year 2, will not be affected by the error. Gross profit in the current year, year 1, will be overstated. Cost of goods sold in the following year, year 2, will be overstated. Cost of goods sold in the current year, year 1, will be overstated. Gross profit in the next year, year 2, will be understated.

In year 1 ending inventory is overstated by $2,000. Explain the effect on cost of goods solc gross profit and net income in year 1 and year 2 Select all answers that apply. Net income in the next year, year 2 , will be overstated. Cost of goods sold in the current year, year 1 , will be understated. Net income in the next year, year 2 , will not be affected by the error. Gross profit in the current year, year 1, will be overstated. Cost of goods sold in the following year, year 2 , will be overstated. Cost of goods sold in the current year, year 1 , will be overstated. Gross profit in the next year, year 2, will be understated