Which formula represents purchases?

The formula that correctly represents purchases in relation to inventory and Cost of Goods Sold (COGS) is derived from basic inventory accounting principles. The correct equation—COGS + Ending Inventory - Beginning Inventory—takes into account the flow of inventory over a given period.

To break it down, COGS represents the cost associated with producing the goods that were sold during the period. Ending Inventory reflects the value of inventory remaining at the end of the period, while Beginning Inventory represents the inventory available at the start of the period. To determine the total purchases made during the period, you can rearrange the relationship between these elements.

Specifically, by starting with COGS and adding the Ending Inventory, you essentially calculate the total cost of goods available for sale. Then, subtracting the Beginning Inventory gives you the value of new purchases made during that period. This formula is rooted in the accounting principle of how inventory moves through a business and is essential for properly tracking and managing inventory levels and costs.

The other options address different concepts that do not align with the calculation of purchases as they pertain to inventory and sales dynamics. Therefore, option C is accompanied by the appropriate logic and accounting principles that define how to derive the purchases figure accurately.