Midland Company buys tiles and prints different designs on them for souvenir and gift stores....
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Accounting
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months sales. The tiles cost $1.00 each and must be paid for in cash. The company has 26,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
January
12,500
February
18,300
March
13,900
April
15,000
May
10,100
June
6,500
Required:
a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
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