In taking a physical inventory at the end of year 2013, Grant Company forgot to count certain units. Indicate how this error affects the following: (a) 2013 cost of goods sold. Overstates 2013 cost of goods sold. Understates 2013 cost of goods sol

In taking a physical inventory at the end of year 2013, Grant Company forgot to count certain units. Indicate how this error affects the following:

(a)

2013 cost of goods sold.

[removed]	Overstates 2013 cost of goods sold.
[removed]	Understates 2013 cost of goods sold.
[removed]	None of the above.

(b)

2013 gross profit.

(c)

2013 net income.

(d)

2014 net income.

(e)

The combined two-year income.

[removed]	The understated 2014 net income and the overstated 2013 net income combine to yield a correct total income for the two-year period.
[removed]	The understated 2013 net income and the overstated 2014 net income combine to yield a correct total income for the two-year period.

(f)

Income for years after 2014.

[removed]	The 2013 error will affect years after 2014.
[removed]	The 2013 error will not affect years after 2014.

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