Oops, Inc. overstated its ending inventory, during its physcial inventory count, by $1,000 in year 1. Which of the following will also be misstated in year 1?
1) purchases will be overstated by $1,000
2) gross profit will be overstated by $1,000
3) cost of goods sold will be understated by $1,000
4) net income will be understated by $1,000