20.9

Keggler's Supply is a merchandiser of three dlfferent products. The company's February 28 Inventorles are footwear, 21,500 units; sports equipment, 79,500 units; and apparel, 49,500 units. Management belleves each of these Inventorles is too high. As a result, a new policy dictates that ending inventory in any month should equal 31% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Requlred: 1. Prepare a merchandise purchases budget (In units) for each product for each of the months of March, Aprill, and May. \begin{tabular}{|c|c|c|c|} & \multicolumn{1}{|c|}{ March } & April & \\ \hline FOOTWEAR & & & \\ \hline Budgeted sales for next month & & & \\ \hline Ratio of ending inventory to future sales & & & \\ \hline & & & \\ \hline Required units of available merchandise & & & \\ \hline Budgeted purchases & & & \\ \hline SPORTS EQUIPMENT & & & \\ \hline Budgeted sales for next month & & & \\ \hline Ratio of ending inventory to future sales & & & \\ \hline \end{tabular}