Brooklyn Furniture, a retail store, has an average gross profil ration of 46%. The sales...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Brooklyn Furniture, a retail store, has an average gross profil ration of 46%. The sales forecast for the next four months follows:
July $250,000
August $220,000
September $310,000
October $400,000
Management's inventory policy is to have ending inventory equal to 300% of the cost of sales for the subsequent month, although it is estimated that teh cost of inventory at June 30 will be $410,000.
Required: Calculate the purchases budget, in dollars, for the months of July and August.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
