If ending inventory is overstated by $6,000,then:

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When ending inventory is overstated, it means that the cost of goods sold (COGS) is understated because the ending inventory is subtracted from the cost of goods available for sale to determine COGS. If COGS is understated, then gross profit is overstated, not understated, because gross profit is calculated as sales minus COGS. Additionally, if the ending inventory is overstated, it means the assets on the balance sheet are overstated, which in turn overstates stockholders' equity because assets minus liabilities equals stockholders' equity. Therefore, both stockholders' equity is overstated and cost of goods sold is understated.

If Ending Inventory Is Overstated by $6,000,then