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Ok i *think* I get it.
COGS = Beginnign Inv + good produced during the period - Ending inv
Assuming goods produced during the period and ending inventory don't change a $2000 increase in beginning inventory will increase COGS. Basic math. Since COGS increased that will reduce net revenue (net revenue = sales - COGS) which will reduced earnings before taxes as the income statement is calculated.
Edited 1 time(s). Last edit at Friday, September 4, 2009 at 05:29PM by Steely Dan. |
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发表于 2011-7-13 15:27
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