In taking a physical inventory at the end of year 2005, Nadir Company erroneously forgot to count certain units. Explain how this error affects the following:

(a) 2005 cost of goods sold,

(b) 2005 gross profit,

(c) 2005 net income,

(d) 2006 net income,

(e) the combined two-year income, and (/) income for years after 2006. l05