Use the Chart Provided Below to Determine the Impact of a Company

question 23

Essay

Use the chart provided below to determine the impact of a company expensing $4,000 transportation costs related to the purchase of its inventory. At year end, the company had sold 50% of the affected inventory items.
$$\begin{array} { | l | l | l | } \hline \text { Goods included in inventory count } & \\\hline \text { Purchases recorded during the year } &\\\hline \text { Transportation costs included in inventory }&\\\hline & 2020 & 2021 \\\hline \text { Beginning inventory } & & \\\hline + \text { Purchases } & & \\\hline \text { -Ending inventory } & & \\\hline \text { =Cost of goods sold } & & \\\hline & & \\\hline \text {Operating expense } &\text{NA} &\text{NA} \\\hline \text { Net income } & --- &---\\\hline & & \\\hline \text { Assets } & & \\\hline \text { Liabilities } & & \\\hline \text { Equity } & &\\\hline\end{array}$$

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Definitions:

Contingency

The possibility that an event may occur, dependent on the fulfillment of certain conditions or the occurrence of another event.

Meat Powder

A powdered form of meat used primarily as a dietary supplement or in food processing.

Negative Contingency

A relationship where the occurrence of one behavior decreases the likelihood of another event or behavior.

Signaled Shock

A procedure in conditioning experiments where a signal or cue is given before an aversive stimulus, such as a shock, to study learning and anticipation.