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Brooklyn Furniture, a retail store, has an average gross profil ration of 46%. The sales forecast for the next four months follows: July $250,000 August
Brooklyn Furniture, a retail store, has an average gross profil ration of 46%. The sales forecast for the next four months follows:
July $250,000
August $220,000
September $310,000
October $400,000
Management's inventory policy is to have ending inventory equal to 300% of the cost of sales for the subsequent month, although it is estimated that teh cost of inventory at June 30 will be $410,000.
Required: Calculate the purchases budget, in dollars, for the months of July and August.
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