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If a Company Overstates Its Ending Inventory Balance for 2015

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If a company overstates its ending inventory balance for 2015 by $10,000, and understates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014? If a company overstates its ending inventory balance for 2015 by $10,000, and understates its ending inventory balance for 2014 by $5,000 what are the effects on its net income for 2015 and 2014?


Definitions:

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Looking for Work

The act of seeking employment or opportunities to earn income.

Unemployment Rate

The rate of joblessness among individuals in the labor force who are earnestly seeking employment.

Labor Force

The total number of people who are employed and those unemployed but seeking work in an economy.

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