how to calculate the beginning inventory
Now you will need to find two things. The ending inventory balance on the balance sheet of the current year, and the new purchases your company has made. For instance, the ending inventory value is $20,000, and the company makes additional purchases in the region of $5000. Add the ending inventory to the cost of goods sold. In this example, you will end up with $30,000 (20,000+10,000). Beginning inventory= Cost of Goods Sold + Ending Inventory â Additional purchases made during the year.