Coleen, thank you for your reply.
In this case why the tax that I owe goes up when I input the correct beginning and ending inventory numbers? This is the part that bothers me. My inventory decreases by $475 and my income from sales is $625. So I expect to owe tax on the $150 profit. But in my case, my owed Federal Tax jumps by nearly $700 and my state tax jumps by more than $200.
