Calculating purchases using mark-up and inventory adjustment Steps:

• Mark-up of 60% on cost means sales = 160% of cost, so cost ratio = 100/160 = 62.5%.
• COGS = revenue × 62.5% = 1,400,000 × 0.625 = 875,000.
• Inventory change = closing inventory - opening inventory = 480,000 - 400,000 = +80,000 (increase).
• Purchases = COGS + inventory increase = 875,000 + 80,000 = 955,000.

Why the options are wrong:

• A, B, C, D do not match the calculated $955,000 from the standard COGS formula (opening inventory + purchases - closing inventory = COGS).

Not enough information. Final answer: Not enough information.