Richard Company's financial records report beginning inventory of $534,000; ending inventory of $697,000; and cost of goods sold of $1,354,000.What is the amount of purchases?
A)$1,517,000
B)$2,051,000
C)$1,234,000
D)$820,000

Question

Quizplus · Accepted Answer

The amount of purchases can be calculated using the formula: Purchases = Ending Inventory - Beginning Inventory + Cost of Goods Sold. Plugging in the values: Purchases = $697,000 - $534,000 + $1,354,000 = $1,517,000.

Richard Company's Financial Records Report Beginning Inventory of $534,000; Ending