ALL CALCULATIONS MUST BE SHOWN

The following are budgeted data for the WU Corporation, a merchandising company:

Budgeted Sales (at retail)
January	$300,000
February	$340,000
March	$400,000
April	$350,000
Cost of goods sold as a percentage of sales	60%
Desired ending inventory	75% of next month sales

Assuming that the WU Corporation had inventory on hand of $70,000 (at cost) on January 1, calculate the purchases needed to support January sales.