The next question deals with the December 31, 2019 Balance Sheet of Horan Industries.

Horan Industries began 2019 with $30,000 in inventory. In 2019, its inventory purchases amounted to $50,000, and it had no inventory-related write-downs or losses. What amount did Horan record as their cost of goods sold expense in 2019?

• $30,000
• $40,000
• $50,000
• $60,000

Transcribed Image Text:

Assets Current Assets Cash Inventory Accounts Receivables Total Current Assets Non-current Assets Plant and Equipment (Net) Patents (Net) Total Assets Horan Industries Balance Sheet as of December 31, 2019 $65,000 40,000 20,000 $125,000 175,000 25,000 $325,000 Liabilities Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Non-current Liabilities Debt Owner's Equity Common Stock Retained Earnings Total Liabilities and Owner's Equity $45,000 55,000 $100,000 75,000 110,000 40,000 $325,000 Assets Current Assets Cash Inventory Accounts Receivables Total Current Assets Non-current Assets Plant and Equipment (Net) Patents (Net) Total Assets Horan Industries Balance Sheet as of December 31, 2019 $65,000 40,000 20,000 $125,000 175,000 25,000 $325,000 Liabilities Current Liabilities Accounts Payable Notes Payable Total Current Liabilities Non-current Liabilities Debt Owner's Equity Common Stock Retained Earnings Total Liabilities and Owner's Equity $45,000 55,000 $100,000 75,000 110,000 40,000 $325,000

Answer rating: 100% (QA)

Cost of Goods Sold would be opening inventory plus ... View the full answer