 In this presentation, we will take a look at some of the components of a manufacturer's income statement. Comparing and contrasting where a manufacturer's income statement may differ from a service company or a merchandiser, where a manufacturer, a company that makes the inventory, could differ from a service company that has no inventory or a merchandiser who just purchases and sells inventory rather than making the inventory. Part of that will be the calculation of the cost of goods sold. So clearly one of the differences we're going to have from a manufacturer to a service company will be related to inventory. And the major difference between the inventory accounts on the income statement is the cost of the inventory, the expense related to the inventory at the point of sale, that being the cost of goods sold. Therefore, a service company