Joes Shrimp Shack has a beginning inventory of $10,000. Joes purchased $100,000 of inventory during the year. At year end, Joes made an error during the inventory count. The ending inventory SHOULD have been $15,000, but was incorrectly counted as $20,000. Sales were $100,000 and operating expense were $10,000. How much will ending inventory, COGS, gross profit, and net income be over/understated at the end of the year? Ignore taxes.

Ending Inventory [ Select ] ["$5,000 understated", "$5,000 overstated"]

COGS [ Select ] ["$5,000 overstated", "$5,000 understated"]

Gross Profit [ Select ] ["$5,000 understated", "$5,000 overstated"]

Net Income [ Select ] ["$5,000 overstated", "$5,000 understated"]