Question

On Pine Branch Department​ Stores' most recent balance​ sheet, the balance of its inventory at the beginning of the year was $ 18000. At the end of the​ year, the inventory balance was $ 21500. During that​ year, its cost of goods sold was $ 61000. All purchases of inventory throughout the year were on account. What was the total of Pine Branch's purchases during the​ year? Pine Branch's total purchases during the year were $

Answer 1

Answer:

$64,500= purchases

Explanation:

Giving the following information:

beginning inventory= $18,000

Ending inventory= $21,500

Cost of goods sold= $61,000.

To calculate the purchases during the year, we need to use the following formula:

COGS= beginning inventory + purchases - ending inventory

61,000= 18,000 + purchases - 21,500

64,500= purchases