Carr Corporation has provided the following information for its most recent month of operation: sales $8,000;beginning inventory $1,000;ending inventory $2,000 and gross profit $5,000.How much were Carr's inventory purchases during the period?
A)$9,000.
B)$5,000.
C)$6,000.
D)$4,000.

Question

Quizplus · Accepted Answer

To find the inventory purchases, use the formula: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold (COGS). First, calculate COGS: Sales - Gross Profit = $8,000 - $5,000 = $3,000. Then, solve for Purchases: $1,000 + Purchases - $2,000 = $3,000, which gives Purchases = $4,000.

Carr Corporation Has Provided the Following Information for Its Most