Ending balances for Rose Fuel Company selected accounts are presented below:
Sales	$300,000
Beginning inventory	50,000
Ending inventory	60,000
Smith's gross margin is 20%. What amount represents Smith purchases?
Using the gross profit method calculate Cost of Goods Sold and Purchases for the period.
A. What is the Cost of Goods Sold?
B. What is the Purchases value for the period?
** Include your calculations for best partial credit