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hello in this lecture were gonna talk about the idea of tracking inventory and recording inventory both in terms of the balance sheet as well as the income statement in the format of cost of goods sold in our example were going to be purchasing and selling forklifts mean were gonna purchase forklifts from the factory and then were gonna sell those forklifts that means that forklifts to us will be inventory their inventory because we are purchasing the forklifts in order to resell them for the generation of revenue thats really going to be the definition of inventory the purchasing of something for the resale of its as opposed to if we were someone else purchasing the forklift in order to help us generate revenue in another way through the use of the forklift in which case it would then be property plant and equipment so its the intended use of the forklift which will determine whether or not it will be an asset in the form of inventory or an asset in the form a format of property