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Assume a merchandising company s estimated sales for January, February, and March are $ 1 1 8 , 0 0 0 , $ 1 3

Assume a merchandising companys estimated sales for January, February, and March are $118,000, $138,000, and $128,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. What are the required merchandise purchases for January?
Multiple Choice
$49,340
$42,700
$39,900
$48,300

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