Cost of goods sold and net income-ending retained earnings

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Reference no: EM131216802

It is discovered in 2014 that ending inventory in 2012 was understated.What is the effect of the understatement on the following:

2012: Cost of Goods Sold, Net Income, and Ending Retained Earnings

2013: Net purchases, Cost of Goods Sold, Net Income, Ending Retained Earnings.

Reference no: EM131216802

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