Answer:
Ending inventory = 14,000
Explanation:
First, we must clear the COSG from the Pretax Income calculation:
Pretax income = Sales revenue - COSG - Total operating expenses
COSG = Sales revenue - Total operating expenses - Pretax income
COSG = 120,000 - 21,000 - 12000
COSG = 87,000
With this data we can clear the ending inventory of the COSG formula:
COSG = Beginning inventory + Purchases - Ending inventory
Ending inventory = Beginning inventory + Purchases - COSG
Ending inventory = 11,000 + 90,000 - 87,000
Ending inventory = 14,000
