A $25,000 overstatement of the 2021 ending inventory was discovered after the financial statements for 2021 were prepared. Which of the following describes the effect of the inventory error on the 2022 financial statements? Multiple Choice Net income and stockholders' equity are both understated. Net income is understated and stockholders' equity is unaffected. Net income and stockholders' equity are both overstated. Net income and stockholders' equity are both unaffected