91Ó°ÊÓ

$$\begin{gathered} \mathbf{Net}\mathbf{}\mathbf{Sales}\mathbf{\left(}\mathbf{2016}\mathbf{\right)}\mathbf{=}\mathbf{Sales}\mathbf{}\mathbf{revenue}\mathbf{-}\mathbf{Sales}\mathbf{}\mathbf{return}\mathbf{}\mathbf{and}\mathbf{}\mathbf{allowances} \\ \mathbf{=}\mathbf{290000}\mathbf{-}\mathbf{11000} \\ \mathbf{=}\mathbf{\$}\mathbf{279}\mathbf{,}\mathbf{000} \end{gathered}$$

Ending inventory for a period is the beginning inventory for the next period.

In the given case, beginning inventory for 2017 is $32,000 so the ending inventory for 2016 would also be the same i.e. $32,000

$$\begin{gathered} \mathbf{Purchases}\mathbf{\left(}\mathbf{2016}\mathbf{\right)}\mathbf{=}\mathbf{Cost}\mathbf{}\mathbf{of}\mathbf{}\mathbf{goods}\mathbf{}\mathbf{sold}\mathbf{+}\mathbf{Ending}\mathbf{}\mathbf{inventory}\mathbf{-}\mathbf{Beginning}\mathbf{}\mathbf{inventory} \\ \mathbf{=}\mathbf{233000}\mathbf{+}\mathbf{32000}\mathbf{-}\mathbf{20000} \\ \mathbf{=}\mathbf{\$}\mathbf{245}\mathbf{,}\mathbf{000} \end{gathered}$$

$$\begin{gathered} \mathbf{Sales}\mathbf{}\mathbf{revenue}\mathbf{\left(}\mathbf{2017}\mathbf{\right)}\mathbf{=}\mathbf{NetSales}\mathbf{+}\mathbf{Sales}\mathbf{}\mathbf{return}\mathbf{}\mathbf{and}\mathbf{}\mathbf{allowances} \\ \mathbf{=}\mathbf{347000}\mathbf{+}\mathbf{13000} \\ \mathbf{=}\mathbf{\$}\mathbf{350}\mathbf{,}\mathbf{000} \end{gathered}$$

$\begin{array}{l}\mathrm{Cost}\mathrm{of}\mathrm{goods}\mathrm{sold}\left(2017\right)=\mathrm{NetSales}-\mathrm{Gross}\mathrm{profit}\mathrm{on}\mathrm{sales}\\ =347000-91000\\ =\$256,000\end{array}$

$$\begin{gathered} \mathbf{Ending}\mathbf{}\mathbf{Inventory}\mathbf{\left(}\mathbf{2017}\mathbf{\right)}\mathbf{=}\mathbf{Beginning}\mathbf{}\mathbf{Inventory}\mathbf{+}\mathbf{Purchases}\mathbf{-}\mathbf{Cost}\mathbf{}\mathbf{of}\mathbf{}\mathbf{goods}\mathbf{}\mathbf{sold} \\ \mathbf{=}\mathbf{32000}\mathbf{+}\mathbf{260000}\mathbf{-}\mathbf{256000} \\ \mathbf{=}\mathbf{\$}\mathbf{36}\mathbf{,}\mathbf{000} \end{gathered}$$

$$\begin{gathered} \mathbf{Net}\mathbf{}\mathbf{Sales}\mathbf{\left(}\mathbf{2018}\mathbf{\right)}\mathbf{=}\mathbf{Cost}\mathbf{}\mathbf{of}\mathbf{}\mathbf{goods}\mathbf{}\mathbf{sold}\mathbf{+}\mathbf{Gross}\mathbf{}\mathbf{Profit} \\ \mathbf{=}\mathbf{293000}\mathbf{+}\mathbf{97000} \\ \mathbf{=}\mathbf{\$}\mathbf{390}\mathbf{,}\mathbf{000} \end{gathered}$$

Beginning inventory for any period is the same as the ending inventory for just the previous period. The ending inventory for 2017 has been computed $36,000.

The beginning inventory for 2018 would also be $36,000

$$\begin{gathered} \mathbf{Ending}\mathbf{}\mathbf{Inventory}\mathbf{\left(}\mathbf{2018}\mathbf{\right)}\mathbf{=}\mathbf{Beginning}\mathbf{}\mathbf{Inventory}\mathbf{+}\mathbf{Purchases}\mathbf{-}\mathbf{Cost}\mathbf{}\mathbf{of}\mathbf{}\mathbf{goods}\mathbf{}\mathbf{sold} \\ \mathbf{=}\mathbf{36000}\mathbf{+}\mathbf{298000}\mathbf{-}\mathbf{296000} \\ \mathbf{=}\mathbf{\$}\mathbf{38}\mathbf{,}\mathbf{000} \end{gathered}$$