Hello,

please help to estimate purchases in 1996
(cost of goods = purchases + beginning inventory - ending inventory)


1995 1996

Sales 1546,5 1993,1
Cost of goods 1076,4 1375,2
Gross margin 470,1 617,9

Inventory 149,5 192,7

I don't know how to find beginning and ending inventory

Thanks

You just insert the figures in your equation and that is it.

Sorry, I don't understand what should I do :(

Please help me with this question, I'm confused

Quote:

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Originally Posted by wen99

Please help me with this question, I'm confused

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There is no confusion. You have the equation:
Cost of goods sold = Beginning inventory + Purchases - Ending inventory

You have the figures for all items except Purchases, mark it as X and then solve the equation. If you rephrase the equation, you get:

Purchases = Cost of goods + Ending inventory - Beginning inventory

Just do it.