It is discovered in 2011 that ending inventory in 2009 was understated. What is the effect of

Question:

It is discovered in 2011 that in 2009 was understated. What is the effect of the understatement on the following:

2009: Cost of goods sold
Net income
Ending retained earnings
2010: Net purchases
Cost of goods sold
Net income
Ending retained earnings

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...