Beginning Inventory plus Net Purchases equals the sum total of a business’s inventory. This equation is an important one for businesses, as it helps to ascertain the total value of items currently in stock and available for sale. It also helps track spending on inventory over time. By adding together the beginning inventory and new purchases, a business can keep track of its stock levels accurately. This allows them to save money by avoiding excess stock and to make sure they always have enough to meet demand. In short, Beginning Inventory plus Net Purchases Equal = Successful Business!