Answer:
The correct answer is A: $1,080,000
Explanation:
Giving the following information:
Reyes Company had a gross profit of $720,000, total purchases of $840,000, and an ending inventory of $480,000 in its first year of operations as a retailer.
Assuming there was any beginning inventory:
Sales= gross profit + (purchase - ending inventory)
Sales= 720,000 + (840,000 - 480,000)= $1,080,000