During the year Bolt's Pet Shop's inventory decreased by $35000. If the company's cost of goods sold for the year was $600000 purchases must have been

Question

Quizplus · Accepted Answer

The correct calculation is: Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory. Given that the inventory decreased by $35,000, it means the ending inventory is $35,000 less than the beginning inventory. So, Purchases = $600,000 + (-$35,000) = $565,000.

During the Year Bolt's Pet Shop's Inventory Decreased by $35000