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Question - Abercrombie and Fitch 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 Abercrombie 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 Abercrombie in the current and previous years was $424,393,000 and $399,795,000, respectively. Net sales for the current year were $3,492,690,000. Cost of goods sold was $1,408,848,000. Income before taxes was $55,161,000.
Required - Determine the amount of purchases for the year. (Hint: Use the cost of goods sold equation to solve for the needed value.)
The cost of goods manufactured during the month was $85 000 and the ending finished goods inventory was $20 000. Find the cost of goods sold during July
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