In 2005, Best Buy reported revenue of $27,433 million. Its gross profit was $6,495 million. What was the amount of Best Buy’s cost of merchandise sold?
For (a) through (d), identify the items designated by “X” and “Y.”
a. Purchases – (X + Y) = Net purchases.
b. Net purchases + X = Cost of merchandise purchased.
c. Merchandise inventory (beginning) + Cost of merchandise purchased = X.
d. Merchandise available for sale – X = Cost of merchandise sold.