If Stevens Co $\begin{array} { c c } \text { Effect on Cost of Goods Sold } & \text { Effect on Net Income } \\\end{array}$

If Stevens Co.overstates its ending inventory for the current year,what are the effects on cost of goods sold and net income for the current year?
$\begin{array} { c c } \text { Effect on Cost of Goods Sold } & \text { Effect on Net Income } \\\end{array}$
a. $\begin{array} { c c } &&&\text { Understated } &&&&& \text { Overstated } \\\end{array}$

b. $\begin{array} { c c } &&&\text { Overstated } &&&&&& \text { No effect } \\\end{array}$

c. $\begin{array} { c c } &&&\text { Understated } &&&&& \text { Understated } \\\end{array}$

d. $\begin{array} { c c } &&&\text { Overstated }&&&& & \text { Overstated }\end{array}$