The managerial accountant at the Health Club is required to determine the amount of cash purchases inventory. The managerial accountant reported a beginning inventory balance of $900,000 and $8,400,000 in cost of goods sold during the year. The ending inventory balance during the year was $850,000. Calculate the amount of cash purchases of inventory during the year. Next, discuss what occurs when there is an increase in the inventory account. What occurs when there is a decrease in the inventory account.

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The Answer of The managerial accountant at the Health Club is required to determine the amount of cash purchases inventory. The managerial accountant reported a beginning inventory balance of $900,000 and $8,400,000 in cost of goods sold during the year. The ending inventory balance during the year was $850,000. Calculate the amount of cash purchases of inventory during the year. Next, discuss what occurs when there is an increase in the inventory account. What occurs when there is a decrease in the inventory account.

The Managerial Accountant at the Health Club Is Required to Determine