On Cherry Blossom Department Stores' most recent balance sheet, the balance of its inventory at the beginning of the year was $11,000. At the end of the year, the inventory balance was $17,500. During that year, its cost of goods sold was $59,000. All purchases of inventory throughout the year were on account.    What was the total of Cherry Blossom's purchases during the year?

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A: Beginning inventory = Ending inventory +/- Decrease/Increase in inventory Purchases = Cost of goods…

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A: The ratio analysis helps to analyse the financial statements of the business.

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A:

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Q: I want answer

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A: Solution:- Inventory Turnover ratio computes the pace at which the inventory is being used.

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A: Periodic Inventory SystemA periodic inventory system is an approach to inventory management in a…

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A: Introduction:- The following formula used to calculate gross margin percentage as follows:- Gross…

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Q: Based on the following information compute (a) inventory turnover, (b) average daily cost of…

A: Inventory turnover ratio refers to number of times inventory is sold or used in a given period.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.