If Cost of Goods Sold is $72,500 and the beginning and ending Inventory balances are $9,000 and $6,500,respectively,inventory purchases for cash equal:
A)$72,500.
B)$70,000.
C)$75,000.
D)$66,000.

Question

Quizplus · Accepted Answer

Ending inventory = Beginning inventory + Purchases − Cost of Goods Sold
Purchases = Ending inventory − Beginning inventory + Cost of Goods Sold
= $6,500 − $9,000 + $72,500 = $70,000

If Cost of Goods Sold Is $72,500 and the Beginning