Beginning inventory $3,200,000 Purchase during the year $1,700,000 Ending inventory $2,100,000 Sales $4,800,000 Gross profit margin ????
????
First we can determine the COGS by: COGS = beginning inventory + purchases – ending inventory = $2,800,000.Then, gross profit margin = (sales – COGS) / sales = 0.42.
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