1. Estimate the Purchase and Disbursements Schedules for four years based on the following assumptions:

• Unit Sales Price is a 40% markup on the Unit Cost of Goods Sold.
• You plan to hold Inventories equal to 110% of your estimate for next year's Sales.
• You pay for 90% of Purchases in the year in which they were purchased and the remainder in
• the following year.
• Inventory at the beginning of the First Year is $1,000,000.

Can anyone please help explain how to calculate COGS based on the in formation above ? Assuming Unit sales price is $5