Multiple Cholce Questlon

Grow R Us overstated its ending inventory in the current year by $$5,000.$ The company incorrectiy reported $$100,000$ of net income. Explain the consequences of

this error on the current period's income statement.

The correct net income amount should have been $$105\mathrm{.}000.$

Cost of goods sold will be too high by $$5\mathrm{.}000.$

Cost of goods sold will be too low by $$5,000.$

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