1. The cost of unsold inventory at the end of the year is classified as a(n)in the A. Assets; Balance sheet B. Expense; Income statement C. Liability; Balance sheet D. Revenue; Income statement 2. Baker Fine Foods has beginning inventory for the year of $12,000. During the year, Baker purchases inventory for $150,000 and ends the year with $20,000 of inventory. Baker will report cost of goods sold equal to: A. $150,000 B. $158,000 C. $142,000 D. $170,000 3. Gross profit is calculated as net sales minus: A. Nonoperating expenses and income tax expense. B. Operating expenses. C. Cost of goods sold. D All of the other answers are subtracted from net sales