M6-4 Inferring Purchases Using the Cost of Goods Sold Equation [LO 6-3]

Marcy's, Inc. operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2013 third-quarter report, the company reported Cost of Goods Sold of $1.2 billion, ending inventory for the third quarter of $1.9 billion, and ending inventory for the previous quarter of $1.7 billion.

Estimate merchandise purchases for the third quarter