In 2005, Best Buy reported revenue of $27,433 million. Its gross profit was $6,495 million. What was…

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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.