Part One: Begin by calculating the cost of goods sold for the year. Paula's Posies Calculation of Cost of Goods Sold For the Year Ended December 31, 2016 Plus: Less: On December 31, 2016, her accounting records show the following: ...$ Sales revenue... $ 58,000 Utilities for shop... 1,200 Inventory on December 31, 2016 ...$ 10,000 Inventory on January 1, 2016 ......$ 12,500 Rent for shop.... $ 3,400 Sales commisions .... ... $ 4,500 Purchases of merchandise.... $ 38,500 Print Done