Question

The following selected account balances were taken from Monk Company's
accounting records during 2022:

                        January 1, 2022       December 31, 2022
  Utilities payable           13,000                 7,000 
  Common stock                39,000                88,000
  Inventory                   42,000                34,000
  Long-term notes payable     83,000                67,000
  Accounts receivable         17,000                69,000 
  Salaries payable            12,000                18,000
  Retained earnings           46,000                65,000
  Accounts payable            75,000                21,000

The following selected information was taken from Monk Company's
2022 statement of cash flows:

  Cash paid to purchase inventory       $157,000
  Net cash flow - financing activities    11,000 inflow
  Cash collected from customers          186,000
  Cash paid for utilities                 28,000

Calculate the amount of cost of goods sold reported on Monk Company's
2022 income statement.

The following selected account balances were taken from Monk Company's
accounting records during 2022:

                        January 1, 2022       December 31, 2022
  Utilities payable           13,000                 7,000 
  Common stock                39,000                88,000
  Inventory                   42,000                34,000
  Long-term notes payable     83,000                67,000
  Accounts receivable         17,000                69,000 
  Salaries payable            12,000                18,000
  Retained earnings           46,000                65,000
  Accounts payable            75,000                21,000

The following selected information was taken from Monk Company's
2022 statement of cash flows:

  Cash paid to purchase inventory       $157,000
  Net cash flow - financing activities    11,000 inflow
  Cash collected from customers          186,000
  Cash paid for utilities                 28,000

Calculate the amount of cost of goods sold reported on Monk Company's
2022 income statement.

Answer 1

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Ending Accounts Payable		$     21,000
Add: Cash Paid to purchase inventory		$ 157,000
Less: Beginning Accounts Payable		$ (75,000)
Purchases		$ 103,000
Add: Beginning Inventory		$     42,000
Less: Ending Inventor		$ (34,000)
Cost of Goods Sold		$ 111,000