During the year, Slick's Pet Shop's inventory decreased by $25,000. If the company's cost of goods sold for the year was $500,000, purchases must have been

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The formula for calculating purchases is: Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory. Since the inventory decreased by $25,000, purchases must have been $500,000 - $25,000 = $475,000.

During the Year, Slick's Pet Shop's Inventory Decreased by $25,000