Westile Company buys plain ceramic 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 each and must be paid for in cash.

The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:

Required

a. Estimate purchases (in units) for January, February, and March,

b, Estimate cash required to make purchases in January, February, and March.

Transcribed Image Text:

January 12,400 February 17,800 March 13,200 April 14,200 May. June 9,600 7,200