If the ending inventory for 20XX is overstated, the effects of this error on cost of goods sold for 20XX and net income for 20XX are:

		Cost of Good Sold is understated, net income is understated.
		Cost of Good Sold is overstated, net income is understated.
		Cost of Goods Sold is understated, net income is overstated.
		Cost of Goods Sold is overstated, net income is overstated.