(c) We must also determine the ending inventory value for
CherryCherry
Company. Use the rearranged
cost of goods sold
formula to solve for this amount.

(d) Next we must calculate the beginning merchandise inventory for
AppleApple
Company. We can manipulate the basic
cost of goods sold
formula to solve for beginning merchandise inventory.

(e) Now use the
gross profit
formula to calculate gross profit for
AppleApple
Company.

For
PearPear

Company, we need to compute the (f) net cost of purchases and (g) the cost of goods sold. In this situation, we must first
determine the cost of goods sold, and then use that information to compute the net cost of purchases. Let's begin by computing
the cost of goods sold amount using the rearranged gross profit formula.