If a company overstates their onding finished goods inventory when calculating cost of goods sold, what is the impact on the financial statements? The cost of goods sold account will be too high on the income statement and the ending inventory will be too low on the balance sheet. Both the cost of goods sold on the income statement and the ending inventory balance will be too high. The cost of goods sold account will be too low on the income statement and ending inventory too high on the balance sheet. Both the cost of goods sold on the income statement and the ending inventory on the balance sheot will be too low