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18 August, 03:57

During the year, a company's inventory decreased by $20,000. if the company's cost of goods sold for the year was $400,000, find the amount for purchases.

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  1. 18 August, 04:49
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    Purchases for the year = $380,000

    Cost of goods sold = change in inventory + purchases

    Make purchases = x, solve for x

    400,000 = 20,000 + x

    x = 380,000
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