E$7-4($Algo$)$ Inferring Merchandise Purchases L$07-1$

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