Thanks for this info. I'm in the same boat. I build small electronic kits by hand and sell on eBay. I fill in the categories for income, supplies, expenses, etc and I choose NO for the Do You Have Inventory question. This is what I am hoping to be able to do.
It never asks me COGS! Is that an internal calculation done for me?? I'm also hoping to choose cash and no inventory. It's not big time stuff, just income on the side (meets the criteria elsewhere on this page).
So, maybe to restate, it's OK to choose NO for the inventory question? Or do I have to choose yes and can get away with 0 inventory at the beginning and end of the year?
