Brooklyn Furniture, a retail store, has an average gross profit ratio of 45%. The sales forecast for the next four month
Posted: Wed Apr 27, 2022 10:58 am
Brooklyn Furniture, a retail store, has an average gross profit
ratio of 45%. The sales forecast for the next four months
follows:
July: $260,000
August: $214,000
September: $305,000
October: $423,000
Management's inventory policy is to have ending inventory equal
to 340% of the cost of sales for the subsequent month, although it
is estimated that the cost of inventory at June 30 will be
$409,000.
Calculate the purchases budget, in dollars, for the months of July
and August.
ratio of 45%. The sales forecast for the next four months
follows:
July: $260,000
August: $214,000
September: $305,000
October: $423,000
Management's inventory policy is to have ending inventory equal
to 340% of the cost of sales for the subsequent month, although it
is estimated that the cost of inventory at June 30 will be
$409,000.
Calculate the purchases budget, in dollars, for the months of July
and August.