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Could someone please explain why if a company reports an ending inventory much higher on its balance sheet by accident, why this would cause the
Could someone please explain why if a company reports an ending inventory much higher on its balance sheet by accident, why this would cause the Cost of goods sold reported to be less than what it should be?
So for example, if a company accidently reports an ending inventory at 200,000,000 on its balance sheet instead of the correct amount of 500,000, why does the cost of goods sold reported be 199,500,000 less than it should be reported? Shouldn't it be more since the ending inventory is accidently reported higher?
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