Question

Marcy's, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter report, the company reported Cost of Goods Sold of $7,900 million, ending inventory for the third quarter of $9,100 million, and ending inventory for the previous quarter of $9,100 million. Estimate merchandise purchases for the third quarter.

Answer 1

Answer:

$7,900 million

Explanation:

The computation of the merchandise purchase is shown below:

Cost of goods sold = Opening inventory + Purchase - ending inventory

$7,900 million = $9,100 million + Purchase - $9,100 million

So, the purchase amounted to $7,900 million

We simply applied the above formula so that the purchase of merchandise could come