Example Information Item Beginning Ending Average Inventory 200,000 300,000 250,000 Accounts 160,000 200,000 180,000 Receivable Accounts 75,000 100,000 87,500 Payable Net Sales $1,150,000 Cost of Goods Sold $820,000 77 Example Information Item Beginning Ending Average Inventory 200,000 300,000 250,000 Accounts Receivable 160,000 200,000 180,000 Accounts Payable 75,000 100,000 87,500 Net Sales = $1,150,000 Cost of Goods Sold = $820,000