Company A operates a grocery store. Use the provided table to calculate the cost of goods sold for the year, adhering to the principles of the Matching Concept and Inventory Valuation. Also, discuss how this valuation impacts the company's financial statements and profitability.

Item	Beginning Inventory ($)	Purchases ($)	Ending Inventory ($)
Groceries	$10,000	$50,000	$12,000
Household Goods	$8,000	$40,000	$10,000
Total	$18,000	$90,000	$22,000

This calculation of the cost of goods sold is crucial for determining the gross profit of the company, which impacts the income statement. Additionally, the ending inventory valuation affects the balance sheet by representing the value of unsold goods at the end of the accounting period.