00:01
Okay, so we are going to be looking here at cost flow and several options have been given regarding the amount or the quantity of inventory that can be available for sale.
00:18
So there are several options that have been given.
00:21
So we're just going to run through those options to find the correct equation to identify the cost flow of merchandising, of a merchandising company.
00:32
Okay, so the first one is that there is going to be net purchases minus beginning inventory equals merchandise available for sale.
00:40
So net purchases minus inventory.
00:46
Okay, so that's the first option here is given.
00:49
The second option that is given is net purchases plus cost of good sold.
00:55
Net purchases plus cost of good sold.
00:56
Net purchases plus cost of good sold the third option is net purchases plus beginning inventory so net purchases plus opening inventory okay and the fourth option is beginning inventory plus our cost of goods sold beginning inventory plus cost of goods sold okay so we can basically just going to have an analysis on each and every one of this.
01:33
The first one, if you have the net purchases, this is something that you have brought into the business, but you wouldn't subtract the inventory, the opening inventory, because that will make the inventory that existed at the beginning of the period not available to sell...