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At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 40,750 units, and it had accounts receivable totaling $87,750. Sales, in units, have
At March 31 Streuling Enterprises, a merchandising firm, had an inventory of 40,750 units, and it had accounts receivable totaling $87,750. Sales, in units, have been budgeted as follows for the next four months: April 62,200 May 77,750 June 93,300 July 84,850 Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales. The selling price is $7.5 per unit. One-third of sales are paid for by customers in the month of the sale, the balance is collected in the following month. Required: Prepare a merchandise purchases budget showing how many units should be purchased for each of the
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