Inventory errors (Learning Objective 6) 10–15 min.

Inland Industrial Supply’s income statement data for the year ended December 31, 2014, follow.

Assume that the ending inventory was accidentally overstated by $3,200. How would the inventory error affect Inland Industrial Supply’s cost of goods sold and gross profit for the year ended December 31, 2015, if the error is not corrected in 2014?AppendixLO1

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Sales Revenue $253,700 Cost of Goods Sold Gross Profit 136,400 $117,300