Understated ending Inventory and effect on net income?

Naomi

New member
in 2011 ending inventory was understated by $55,000.
as reported, the ending inventory was $345,000
Cost of Goods Sold was $1,300,000
Net income was $340,000

I have concluded that corrected, ending inventory would be $400,000
Cost of goods sold would be $1,245,000
But am unsure as to how this would affect net income? Would I then add the $55,000 to net income?
 
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