Effect of Inventory Errors

During the taking of its physical inventory on December 31, 20Y3, Kate's Interiors Company incorrectly counted its inventory as $376,780 instead of the correct amount of $414,460. Indicate the effect of the misstatement on Kate's Interiors's December 31, 20Y3, balance sheet or income statement for the year ended December 31, 20Y3. For each, select if the amount is overstated or understated. Then, input the over or under amount, entered as a positive value.

Cost of goods sold	Balance SheetIncome StatementIncome Statement	OverstatedUnderstatedNo effectOverstated	$________
Current assets	Balance SheetIncome StatementBalance Sheet	OverstatedUnderstatedNo effectUnderstated	$________
Gross profit	Balance SheetIncome StatementIncome Statement	OverstatedUnderstatedNo effectUnderstated	$________
Inventory	Balance SheetIncome StatementBalance Sheet	OverstatedUnderstatedNo effectUnderstated	$________
Net income	Balance SheetIncome StatementIncome Statement	OverstatedUnderstatedNo effectUnderstated	$________
Stockholders' equity	Balance SheetIncome StatementBalance Sheet	OverstatedUnderstatedNo effectUnderstated	$________
Total assets	Balance SheetIncome StatementBalance Sheet	OverstatedUnderstatedNo effectUnderstated	$________