The following information is available for the Brown Company for 2010: $\begin{array}{ll}
\text { Grosssprofit } & \$ 30,000 \
\text { Net sales } & 500,000 \
\text { Beginning inventory } & 220,000 \
\text { Ending inventory } & 40,000
\end{array}$ What was the amount of net purchases?
A)$290, 000
B)$210, 000
C)$180, 000
D)$150, 000

Question

Quizplus · Accepted Answer

Net purchases = Net sales + Beginning inventory - Ending inventory= 500,000 + 220,000 - 40,000= $290,000

The Following Information Is Available for the Brown Company for 2010