Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?
A)$164,000
B)$201,000
C)$97,000
D)$174,000

Question

Challenge Tennis & Recreation's operating activities for the year are listed below.  What is the cost of goods available for sale?
A)$164,000 
B)$201,000 
C)$97,000 
D)$174,000

Quizplus · Accepted Answer

The cost of goods available for sale is the sum of the beginning inventory and the purchases made during the year. Using the information provided, the beginning inventory is $37,000 and the total purchases are $164,000, so the cost of goods available for sale is $37,000 + $164,000 = $201,000.

Challenge Tennis & Recreation's Operating Activities for the Year Are