Question

20. Refer to the financial statement information for Vanedelay, Corp. What dollar amount of inventory purchases did Vandelay make for the year ended 12/31/18?

Income Statement
Year ended December 31	2018
Sales	$65,077.20
Cost of goods sold	(48,592.80)
Selling, general, & admin.	(13,597.20)
Other	(811.80)
Interest expense	(802.80)
Misc. gains, losses, & expenses	(446.40)
Net income (loss)	826.20

Vandelay, Corp.
Statements of Financial Position
At December 31	2018	2017
Current Assets
Cash	$3,825.0	$635.4
Accounts receivable	1,965.6	2,986.2
Inventories	11,943.0	12,335.4
Total current assets	17,733.6	15,957.0
Property, plant, and equipment, net	9,541.8	10,819.8
Other long term assets	2,293.2	3,178.8
Total assets	29,568.6	29,955.6
Current liabilities
Accounts payable	3,587.4	4,748.4
Accrued expenses and other liabilities	1,672.2	2,084.4
Taxes payable	338.4	943.2
Total current liabilities	5,610.6	9,545.4
Long term debt obligations	12,600.0	9,552.6
Shareholders’ equity
Common stock	3,798.0	3,783.6
Retained earnings	7,560.0	7,074.0
Total shareholders’ equity	11,358.0	10,857.6

Answer 1

Ending Inventory in 2018	$11,943
Add: Cost of Goods Sold	$48,592.80
Less: Beginning inventory in 2018 (ending inventory in 2017 will be the beginning inventory in 2018 as its balance carried forwarded from previous period)	($12,335.40)
Purchase of Inventory in 2018	$48,200

Therefore, the amount of purchases of inventories made in 2018 is $48,200.