Final answer:
The Cost of Goods Available for Sale is the sum of Beginning Inventory and Cost of Goods Purchased. In economics-related formulas, such as the quantity supplied of financial capital, the calculation can include terms like Private savings, Trade deficit, and Government surplus.
Step-by-step explanation:
The Cost of Goods Available for Sale (CGAS) is calculated by adding the value of the beginning inventory to the cost of goods purchased during a period. In equation form, Cost of Goods Available for Sale = Beginning Inventory + Cost of Goods Purchased. This figure represents the total value of inventory that a business has to sell over a given period, before subtracting the ending inventory to find the Cost of Goods Sold (COGS).
Examples in Economics
In the context of economics, when discussing the quantity supplied of financial capital, the formula might be represented as Private savings (S) + Trade deficit (M-X) + Government surplus (T-G). In this case, a trade deficit occurs when imports (M) exceed exports (X), and a government surplus is when taxes (T) exceed government spending (G).
Similarly, when calculating Gross Domestic Product (GDP), the formula used is GDP = Consumption (C) + Investment (I) + Government Spending (G) + Net Exports (X - M). The net exports figure will be negative in the case of a trade deficit, reducing the overall GDP.