What is the formula for determining goods available for sale?

The correct formula for determining goods available for sale is the sum of beginning inventory and additions to inventory. This formula effectively captures all the stock that was available for sale during a given period.

Beginning inventory represents the amount of product that a business has at the start of a accounting period. Additions to inventory reflect any new inventory that was acquired during that period, whether through purchases, production, or other means. By adding these two components together, you arrive at the total goods available for sale. This is critical for understanding how much stock is ready to meet customer demand and is vital for accurate financial reporting, inventory management, and fulfilling sales orders.

The other options do not accurately represent this concept. For instance, the cost of goods sold is calculated after determining how much inventory was sold and does not pertain to the total available for sale. Ending inventory minus sales returns does not give a comprehensive view of what was available to sell during the period as it focuses only on certain aspects of inventory management.