Problem
KnK Company, Inc., is a major retailer with department stores in all 50 states. The dominant portion of the company's business consists of providing merchandise and services to consumers through department stores that include catalog departments. In a recent annual report, KnK Company reported cost of goods sold of $11, 563 million, ending inventory for the current year of S3.255 million, and ending inventory for the previous year of $3.645 million.
Required: Develop a reasonable estimate of the merchandise purchases for the year?