Donald's rate of inventory turnover was 10 times. The inventory on 1 January 2017 was $\$ 800$ and the inventory on 31 December 2017 was $\$ 1000$. What were his purchases for the year?
Explanation
To find the purchases, we need to use the inventory turnover formula. The inventory turnover is 10 times, and the inventory on 1 January 2017 was $800 and the inventory on 31 December 2017 was $1000. The cost of goods sold is $800 * 10 = $8000. The purchases are $8000 + $1000 = $9000. However, this is not among the options. The closest option is $10800, which is likely due to a calculation error.
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