The financial statements of Tin Company included the following: Based on the information provided, what was the company's cost of goods sold?

Question

The financial statements of Tin Company included the following:  Based on the information provided, what was the company's cost of goods sold?

Quizplus · Accepted Answer

The company's cost of goods sold is calculated as beginning inventory plus purchases minus ending inventory. Using the information provided in the financial statements, the calculation would be:
$300,000 (beginning inventory) + $400,000 (purchases) - $200,000 (ending inventory) = $500,000. Therefore, the correct answer is C) $700,000.

The Financial Statements of Tin Company Included the Following