The following information comes from the annual reports of Devin Designs.
$$\begin{array} { | l | r | r | r | }
\hline & { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 5 } } &\mathbf {2 0 1 5 } \
\hline \text { Beginning irventary } & ? & ? & 2 , 2 5 0\
\hline \text { Purchases } & 12,652 & ? & ? \
\hline \text { Goods available for sale } & ? & ? & 12 ,899\
\hline \text { Ending irventary } & ? &2 , 6 6 2 & ? \
\hline \text { Cost of goods sald } & 12,213 & 10 , 9 08& 10,490 \
\hline
\end{array}$$

What is the amount of purchases for 2016?

Question

The following information comes from the annual reports of Devin Designs.
$$\begin{array} { | l | r | r | r | } 
\hline & { \mathbf { 2 0 1 7 } } & { \mathbf { 2 0 1 5 } } &\mathbf {2 0 1 5 } \
\hline \text { Beginning irventary } & ? & ? &  2 , 2 5 0\
\hline \text { Purchases } & 12,652 & ? & ? \
\hline \text { Goods available for sale } & ? & ? & 12 ,899\
\hline \text { Ending irventary } & ? &2 , 6 6 2  & ? \
\hline \text { Cost of goods sald } & 12,213 & 10 ,  9 08& 10,490 \
\hline
\end{array}$$

What is the amount of purchases for 2016?

Quizplus · Accepted Answer

For 2016, we can calculate the purchases by using the formula: Goods Available for Sale = Beginning Inventory + Purchases - Ending Inventory. From the table, the Goods Available for Sale and Cost of Goods Sold (COGS) for 2016 are not directly given, but we can infer the Goods Available for Sale for 2016 by adding the COGS for 2016 (10,908) to the Ending Inventory for 2016 (2,662), which gives us 13,570. Since the Beginning Inventory for 2016 is the Ending Inventory for 2015 (2,250), we can calculate Purchases for 2016 as follows: 13,570 = 2,250 + Purchases - 2,662. Solving for Purchases gives us 11,161.

The Following Information Comes from the Annual Reports of Devin