Grow R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income. Explain the consequences of this error on the current period's income statement.Multiple choice question.The correct net income amount should have been $105,000.Cost of goods sold will be too low by $5,000.Cost of goods sold will be too high by $5,000.

Sparky's incorrectly included inventory that was on consignment in its ending inventory count. Consequently, the ending inventory was overstated on the balance sheet. Explain how this error will affect this year's income statement.Multiple select question.This year's cost of goods sold will be too high.This year's cost of goods sold will be too low.This year's net income will be too low.This year's net income will be too high.

Cake Mart understated its ending inventory in the current year by $5,000. The company incorrectly reported net income of $100,000. Determine the effect this error had on the financial statements.Multiple choice question.Total assets on the balance sheet will be too high by $5,000.Cost of goods sold was too low by $5,000, which caused net income to be overstated.Cost of goods sold will be too high by $5,000, and this caused net income to be understated by $5,000.Cost of goods sold will be too high by $5,000, and this caused net income to be overstated by $5,000.

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.Multiple select question.Cost of goods sold in the current year, year 1, will be overstated.Cost of goods sold in the following year, year 2, will be overstated.Gross profit in the current year, year 1, will be overstated.Net income in the next year, year 2, will not be affected by the error.Cost of goods sold in the current year, year 1, will be understated.Gross profit in the next year, year 2, will be understated.Net income in the next year, year 2, will be overstated.

Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently, the ending inventory on 12/31 was understated on the balance sheet. Explain how this error affects the current year's income statement.Multiple select question.The current year's cost of goods sold will be too high.The current year's net income will be too low.The current year's cost of goods sold will be too low.The current year's net income will be too high.

Storm Windows Company understated their ending inventory during their first year of operations by $2,000. What is the effect of this error at the end of the year? Select all answers which apply.Multiple select question.$2,000 overstatement of net income.$2,000 overstatement of cost of goods sold.$2,000 understatement of net income.$2,000 understatement of cost of goods sold.