Hello @junhuayq ,
Thanks for the question!
In general, you are right on. Your "Cost of Goods Sold" is calculated in part by taking your beginning inventory, adding purchases, and subtracting your ending inventory. So, if you sell off more inventory, your ending inventory will be lower, thus increasing your Cost of Goods Sold. Cost of Goods Sold is then a direct subtraction from your business income.
I hope that helps you!
All my best,
Adam, EA
TurboTax Live Expert
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