Elm Corporation is a merchandising company. The year began with inventory of $23,000, Purchases for the year were $48,000, and the Ending Inventory was $10,000. What is the Cost of Goods Sold that would be reported on the income statement?

The Cost of Goods Sold to be reported on Income statement for the eyar is $61000

Explanation:

The cost of goods sold is the cost of inventory that a firm has sold in a particular period.

the cost of goods sold can be calculated using the following formula,

Cost of Goods sold = Opening inventory + Purchases - Closing Inventory

So, for Elm Corporation the cost of goods sold is,

COGS = 23000 + 48000 - 10000 = $61000