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Accounting
Palangga Company provided the following information for the current year: Beginning inventory 400 000 Freight in 300,000 Purchase returns 900,000 Ending inventory 500,000 Distribution Cost 1,250,000 Sales discount 250,000 The cost of goods sold is six times the distributions costs. What is the amount of gross purchases? a. 6,500,000 b. 6,700,000 c. 8,000,000 d. 8,200,000

Palangga Company provided the following information for the current year: Beginning inventory 400 000 Freight in 300,000 Purchase returns 900,000 Ending inventory 500,000 Distribution Cost 1,250,000 Sales discount 250,000 The cost of goods sold is six times the distributions costs. What is the amount of gross purchases? a. 6,500,000 b. 6,700,000 c. 8,000,000 d. 8,200,000

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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Palangga Company provided the following information for the current year:

Beginning inventory 400 000

Freight in 300,000

Purchase returns 900,000

Ending inventory 500,000

Distribution Cost 1,250,000

Sales discount 250,000

The cost of goods sold is six times the distributions costs.

What is the amount of gross purchases?

a. 6,500,000

b. 6,700,000

c. 8,000,000

d. 8,200,000

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