Ref: pages 8-9.
Ref: page 6-8.
Ref: page 9 and Exhibit 1-2.
Ref: pages 5 and 19.
Ref: page 6.
Ref: page 19.
Ref: page 12.
Solution: PUR = EI – BI + COGS … (1-2)
PUR = $40,000 - $25,000 + $35,000 = $50,000
Solution: EI = BI + PUR - COGS … (1-1)
EI = $35,000 + $50,000 - $45,000 = $40,000
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