The Finish Line Inc. reported the following items in its fiscal 2012 financial report (dollars in millions):

Assume that counting errors caused the ending inventory in 2011 to be understated by $50 and the ending inventory in 2012 to be overstated by $50.
a. Compute the impact of these errors on cost of goods sold for the year ended December 31, 2011, and on the inventory balance as of December 31, 2011.
b. Compute the impact of these errors on cost of goods sold for the year ended December 31, 2012, and on the inventory balance as of December 31, 2012.
c. What is the impact of these errors on cost of goods sold over the two-year period ended December 31,2012?

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2012 2011 Sales $1,443 $1,369 Cost of goods sold: Beginning inventory Purchases Goods available for sale Less: Ending inventory $220 983 $1,203 244 $194 915 $1,109 220 Cost of goods sold Gross profit 959 S 484 889 $ 480