Suppose ending inventory on $12//31//23$ was overstated by $$100.$ Assuming beginning inventory

and inventories purchased were correctly recorded. The error was not discovered until $2025.$

$($Ignore income taxes$)$

Effect on the $2023$ value of:

Cost of goods sold:

Net income:

Retained earnings:

Effect on the $2024$ value of:

Cost of goods sold:

Net income:

Retained earnings: