Suppose Staples Inc.'s $1.9 million cost of inventory at its fiscal year-end on February 3, 2013, was

Question:

Suppose Staples Inc.'s $1.9 million cost of inventory at its fiscal year-end on February 3, 2013, was understated by $0.5 million.
1. Would 2013's reported gross profit of $5.2 million be overstated, understated, or correct? What would be the correct amount of gross profit for 2013?
2. Will 2014's gross profit of $5.6 million be overstated, understated, or correct? What would be the correct amount of gross profit for 2014?