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E6-4 (Algo) Inferring Shrinkage Using a Perpetual Inventory System [LO 6-2] In the year ended February 2, 2019, Stewart Company reported cost of goods
E6-4 (Algo) Inferring Shrinkage Using a Perpetual Inventory System [LO 6-2] In the year ended February 2, 2019, Stewart Company reported cost of goods sold (before shrinkage) of $18.1 billion; February 2, 2019. Inventory of $9.2 billion; and ending inventory for the previous year (February 3, 2018) of $8.6 billion. Required: If the cost of inventory purchases was $19.1 billion, what was the cost of shrinkage during the year ended February 2, 2019? (Enter your answer in billions rounded to 1 decimal place.) Cost of Shrinkage billion
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