 available for sale, less ending inventory gives the cost of goods sold. Right, that's gonna be our calculation that you gotta basically put into the tax formula. And in this case, if this was the first year the beginning inventory would be zero if there was no prior inventory. We don't really know the purchases because I wasn't tracking that. What we do know is the ending inventory, right? I know the ending inventory is this amount. Is that what we came up to? Yeah, that's the ending inventory. And so, and so, and then we also know the cost of goods sold now because I can pull that from my sheet over here and say that my cost of goods sold is currently at the 3409. So this is at 3409. So using that, we're only missing the purchases. We can basically back into the purchases, right? So we've got zero in essence plus X minus the 2013 equals the 3409. And we can basically do our algebra to solve for X and that basically means that in our purchases we're gonna say this is gonna be equal to this plus this. And then this is equal to this plus this. So if I double check this, my beginning inventory is zero. My purchases is that if I sum this up this is the amount that's available for sale. And then my ending inventory is that. And if I subtract this out I get to the 3409. So you can populate your worksheet because basically you will know in essence the ending inventory and the cost of goods sold and you can back into the purchases. Now note that if it's your second year or multiple years of doing your schedule C then you will have beginning inventory. How do you know what the beginning inventory is? It's the ending inventory from last year. So if you look at last year's return and you had ending inventory of $1,000 then again you could do the similar calculation but then accounting for the $1,000 beginning inventory which means you'd basically just subtract out if I do my algebra here it would be this, this, minus that. And so if I double check it there's the $1,000 plus the purchases gives us the amount available which is spelled wrong for sale unless the ending inventory gets us to that 3409. So in essence, if you can get your ending inventory then you can make your journal entry in your QuickBooks system which can give you basically the cost of goods sold that's being calculated within the QuickBooks system and then you get the beginning inventory because that's the same as last year's ending inventory and if you have all that you just have one unknown in your little algebraic equation which is the purchases that possibly you could back into. So that's kind of the easiest way that you're making some assumptions and whatnot to deal with this whole thing and that way you could basically just focus on your time on trying to cover the amount of inventory like most new people might be doing in terms of units to cover the sales. Although again, as you get more sophisticated you're gonna want more accounting needs for internal uses because this matching system doesn't give you the best results to know which products are giving you the highest profit margins and whatnot. So we'll talk about some other methods in future presentations.