if $7495 is the actual cost of the books sold than that should be cost of goods sold
you beginning inventory is $38,635
you spent an unstated amount for current year production that amount, if any, should be purchases
$38535 + purchases - the $7495 cost of books sold should be the cost of your ending inventory
if you spent nothing for purchases during the year, your ending inventory would be $31,140
cgs section
beginning inventory $38635
ending inventory $31140
cost of goods sold $7495 which should appear on line 4 of schedule C
on the other hand say you spent $5,000 in 2018 for production costs
then
beginning inventory $38635
purchases $5000
ending inventory $36140 (38635+5000-7495)
cost of goods sold $7495
however, your ending inventory could be lower. say $500 worth of books were destroyed by mold , water, whatever.
or say you threw out $500 worth of books because they were no longer salable
then you ending inventory would be $500 lower and the cost of sales would be $500 higher. yes, i know, the $500 wasn't sold but this is how it works, terminology aside. .
hope i've been helpful.
