At 31 December 2014, the end of their accounting year, the Zanzibar trading company understated ending inventory by $4,250. The profit for 2014 will be:

Name: At 31 December 2014, the end of their accounting year, the Zanzibar trading company understated ending inventory by $4,250. The profit for 2014 will be:
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When ending inventory is understated, it means that the cost of goods sold (COGS) is overstated, which in turn understates the profit for the year.

At 31 December 2014, the End of Their Accounting Year