Question 2: Cost flows, income statement You own a store. Beginning inventory on January 1 was $7,000. Ending inventory on December 31 was $3,500. You purchased $25,000 of new merchandise during the year. Sales revenue for the year was $45,000. Selling, general, and administrative (SG&A) costs for the year were $4,000. a) Compute the cost of goods sold (COGS) for the year. 28000 X b) Prepare the income statement for the year. 45000 Revenue COGS 28000 X Gross Margin SG&A costs Profit