The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Inventory is income? Date:  9/25/2012  1:17 AM
Author:  Jeanwa Number:  116658 of 127753

Maybe if we go on to year two of my furnace repair guy. He sold the same amount of goods and he replaced those goods he sold. This year he has no increase in inventory. So all the purchases he made can be deducted.

Total Sales 200.00

Beginning inventory 25.00
Purchases 100.00

Ending inventory 25.00
Cost of goods sold 100.00

Gross profit from Sales 125.00

Utilities 10.00
Rent 10.00
Insurance 10.00

Total Expenses 30.00

Net income 95.00

Cool, I've never gotten the < pre > thingy to work before had to try it again!

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us