Tarmac Co made sales of $1,930,200 during the year ended 31st March X3. Inventory decreased by $132,000 over the year and all sales were made at a mark-up of 45%. What was the cost of purchases during the year, to the nearest $100?

Tarmac Co made sales of $1,930,200 during the year ended 31st March X3. Inventory decreased by $132,000 over the year and all sales were made at a mark-up of 45%. What was the cost of purchases during the year, to the nearest $100?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 12PROB

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Question

Tarmac Co made sales of $1,930,200 during the year ended 31st March X3.
Inventory decreased by $132,000 over the year and all sales were made at
a mark-up of 45%.

What was the cost of purchases during the year, to the nearest $100?

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