An understatement of the Finished Goods Inventory account at the end of a period will lead to which of the following effects?

choose one, options:

1. an understatement of the COGS in the current period;
2. an overstatement of the Gross Margin in the current period;
3. an understatement of the Net Income for the current period;
4. an understatement of the Cash balance for the current period