Concept introduction Cost of goods sold is nothing but the total cost of goods that were actually sold during a particular period. It includes the opening inventory and we add purchases and after reducing the closing inventory we get the cost of goods sold. To calculate We need to calculate the cost of goods sold of the windshield pro, a retail merchandising company.

Question

The December 31, 2021, balance sheet of Chen, Incorporated, showed long-term debt of $1,420,000, $144,000 in the common stock account, and $2,690,000 in the additional paid-in surplus account. The December 31, 2022, balance sheet showed long-term debt of $1,620,000, $154,000 in the common stock account and $2,990,000 in the additional paid-in surplus account. The 2022 income statement showed an interest expense of $96,000 and the company paid out $149,000 in cash dividends during 2022. The firm’s net capital spending for 2022 was $1,000,000, and the firm reduced its net working capital investment by $129,000. What was the firm's 2022 operating cash flow, or OCF?

Answer 1

Question

Chapter 18, Problem S18.5SE

To determine

Concept introduction

Cost of goods sold is nothing but the total cost of goods that were actually sold during a particular period. It includes the opening inventory and we add purchases and after reducing the closing inventory we get the cost of goods sold.

To calculate

We need to calculate the cost of goods sold of the windshield pro, a retail merchandising company.

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