Question 7 - 15 A business has lost the information relating to its purchases but knows that it makes a gross profit margin of 20% on sales. In the year, sales were 672,000 and closing inventory is valued at 60,000; closing inventory in last year's accounts was 63,200. The best estimate of purchases in the year is: 1 597,600 2 584,000 3 534,400 4 556,800