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E7-4 (Algo) Inferring Merchandise Purchases LÖ7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases

E7-4 (Algo) Inferring Merchandise Purchases LÖ7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E7-4 (Algo) Inferring Merchandise Purchases LO7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases
Transcribed Image Text:E7-4 (Algo) Inferring Merchandise Purchases LO7-1 Harrison and Company is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Harrison annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Harrison in the current and previous years was $272,372,000 and $233,103,000, respectively. Net sales for the current year were $2,540,276,000. Cost of goods sold was $178,614,000. Income before taxes was $172,305,000. Required: Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation or the inventory T-account to solve for the needed value.) Amount of purchases
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