Lakeside Components wishes to purchase parts in one month for sale in the next. On June the company has parts in stock, although sales for June are estimated to total parts. Total sales of parts are expected to be in July and in August.
Parts are purchased at a wholesale price of $ The supplier has a financing arrangement by which Lakeside Components pays percent of the purchase price in the month when the parts are delivered and percent in the following month. Lakeside purchased parts in May.
Required:
a Estimate purchases in units for June and July.
b Estimate the cash required to make purchases in June and July.
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Estimate purchases in units for June and July.
tableJune,JulyMerchandise to be purchased in units,,
