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July 15, 2020
Question

Should I report inventory or supplies and materials?

  • July 15, 2020
  • 1 reply
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I've reported inventory in past years, can I not report inventory for the most recent year?

1 reply

Employee
July 15, 2020

Inventory has three components:  Beginning Inventory, Purchases, and Ending Inventory.  These figures are used to calculate Cost of Good Sold.  COGS = Beginning Inventory + Purchases - Ending Inventory.  2019 Ending Inventory then becomes Beginning Inventory for 2020....so yes reporting inventory is required.