Marcy's, Inc., operates department stores located primarily in the Southwest, Southeast, and Midwest. In its 2016 third-quarter report, the company reported Cost of Goods Sold of $2,100 million, ending inventory for the third quarter of $3,200 million, and ending inventory for the previous quarter of $2,800 million. Estimate merchandise purchases for the third quarter.

$2,500 million

Explanation:

Calculation to Estimate merchandise purchases for the third quarter

Using this formula

Third quarter merchandise purchases= Ending inventory + Cost of goods sold - Beginning inventory

Let plug in the formula

Third quarter merchandise purchases= $3,200 million + $2,100 million - $2,800 million

Third quarter merchandise purchases= $2,500 million

Therefore The Estimated merchandise purchases for the third quarter will be $2,500 million

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explanation:

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