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Naman jain
Member
While preparing income statement we calculate cost of goods sold and in that we calculate cost of inventory by the formula : opening stock + purchases - closing stock
My question is that if in the question we are given increase or decrease in inventory instead of opening stock and closing stock then what is the treatment and the reason behind it.
My question is that if in the question we are given increase or decrease in inventory instead of opening stock and closing stock then what is the treatment and the reason behind it.