At the beginning of 2013, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2013, the owner wants to increase inventory on hand to $450,000 at December 31, 2013. If net sales for 2013 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the goods the owner should expect to purchase during 2013.

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The Answer of At the beginning of 2013, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2013, the owner wants to increase inventory on hand to $450,000 at December 31, 2013. If net sales for 2013 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the goods the owner should expect to purchase during 2013.

At the Beginning of 2013, Wilson Stores Has an Inventory