If the ending inventory of a firm is overstated by $48,000, by how much and in what direction (overstated or understated) will the firms operating income be misstated?

Operating income: (overstated or understated)

By: (amount)

(Hint: use the cost of goods sold model, enter hypothetically correct data, and then reflect the effects of the ending inventory error and determine the effect on cost of goods sold)