Question: In 1996, Rizzo Co. had Beginning Inventory of S24,000 and Ending Inventory of S17,000. Sales Revenue during 1996 totaled $40,000. The gross profit percentage for

In 1996, Rizzo Co. had Beginning Inventory of S24,000 and Ending Inventory of S17,000. Sales Revenue during 1996 totaled $40,000. The gross profit percentage for previous years was 25% of sales. The purchase receipts file was destroyed in a fire during 1996. Based on the given information, what were purchases in 1996?

a. $17,000

b. $27,000

c. $30,000

d. $33,000

e. $23,000

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