Question

The following data pertains to Greenwold Manufacturing. Total assets at January 1, 20X9, were $290,000; at December 31, 20X9, total assets were $334,000. During 20X9, sales were $995,000; cash dividends declared were $10,000; and operating expenses (exclusive of cost of goods sold) were $545,000. Total liabilities at December 31, 20X9, were $128,000; at January 1, 20X9, total liabilities were $105,000. There was no additional paid-in capital during 20X9. What was cost of goods sold for 20X9?

Answer 1

The cost of goods sold for 20X9 is $964000.

Step-by-step explanation:

stock holders equity at the beginning = Asset - liability

= $290,000 - $105,000

= $185000

stock holders equity at the end = Asset - liability

= $334,000 - $128,000

= $206000

Net income = Stock holders at the end - stock holders equity at the beginning + Dividends

= $206000 - $185000 + $10,000

= $31000

cost of goods sold = sales - Net income

= $995,000 - $31000

= $964000

Therefore, the cost of goods sold for 20X9 is $964000.