Ask Question
10 May, 10:34

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?

+3
Answers (1)
  1. 10 May, 10:53
    0
    The cost of goods sold for 20X9 is $964000.

    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.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following data pertains to Greenwold Manufacturing. Total assets at January 1, 20X9, were $290,000; at December 31, 20X9, total assets ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers