The 2011 and 2012 Balance Sheets for Jacob, Inc. contained the following entries: 3 / 3 points Accounts receivable Inventories Net fixed assets Accounts payable 12/31/2011 12/31/2012 $720 $452 $584 $816 $637 $659 $413 $611 Jacob had materials purchases in 2011 of $1,753 and materials purchases in 2012 of $1,957 . What did Jacob record as Cost of Goods Sold (COGS) on its 2012 income statement

Cost of Goods Sold (COGS) on its 2012 income statement  $1723

Explanation:

Jacob, Inc.

                                                 12/31/2011          12/31/2012

Accounts receivable                   $720                 $452

Inventories                                   $584                $816

Net fixed assets                           $637                   $659

Accounts payable                       $413                     $611

Jacob had materials purchases in 2011 of $1,753 and materials purchases in 2012 of $1,957.

This COGS is calculated by the following formula :

Cost of Goods Sold (COGS) = Beginning Inventory + Material Purchases - Ending Inventory

COGS= $ 584 + $ 1957 - $ 816= $ 1723

Calculations

Ending Inventories  $ 816

Less Beginning Inv $ 584

Difference $ 234      

Materials Purchases (2012)  $1,957

Difference $ 234

Cost of Goods Sold (COGS) on its 2012 income statement  $1723

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.