Goldman Inc.
The following is from Goldman Inc.'s 2017 income statement.

$$\begin{array} { l r }
\text { Purchases } & \$ 172,000 \
\text { Transportation-in } & 11,000 \
\text { Inventory, January 1, 2017 } & 26,500 \
\text { Inventory, December 31, 2017 } & 28,800 \
\text { Purchase returns and allowances } & 8,400
\end{array}$$
- How much will Goldman report as cost of goods purchased in its 2017 income statement?

Question

Goldman Inc. 
The following is from Goldman Inc.'s 2017 income statement.
 
$$\begin{array} { l r } 
\text { Purchases } & \$ 172,000 \
\text { Transportation-in } & 11,000 \
\text { Inventory, January 1, 2017 } & 26,500 \
\text { Inventory, December 31, 2017 } & 28,800 \
\text { Purchase returns and allowances } & 8,400
\end{array}$$
- How much will Goldman report as cost of goods purchased in its 2017 income statement?

Quizplus · Accepted Answer

Cost of goods purchased = Purchases + Transportation-in - Purchase returns and allowances= 172,000 + 11,000 - 8,400= $174,600

Goldman Inc - How Much Will Goldman Report as Cost of Goods