Response to the following questions:
1. For a recent year, Target Corporation reported revenue of $65,786 million. Its gross profit was $20,061 million. What was the amount of Target's cost of merchandise sold?
2. For (a) through (d), identify the items designated by "X" and "Y."
a. Purchases - (X + Y) = Net purchases.
b. Net purchases + X = Cost of merchandise purchased.
c. Merchandise inventory (beginning) + Cost of merchandise purchased = X.
d. Merchandise available for sale - X = Cost of merchandise sold.