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Exercise 1 3 - 3 5 ( Algo ) Estimate Purchases and Cash Disbursements ( LO 1 3 - 3 , 4 ) Dawes Designs
Exercise Algo Estimate Purchases and Cash Disbursements LO
Dawes Designs buys Tshirts for clubs, teams, and other organizations. Dawes takes the shirts and adds the organization's logo
Because of the uncertainty in the timing of the sales and to avoid stock outages, Dawes tries to maintain an inventory of shirts equal to
twomonth's of sales. The shirts cost $ each and must be paid for in cash. On June of the current year, the company expects
to have shirts in stock. Sales estimates, based on contracts received and historical data, are as follows for the next six months:
Required:
a & b Estimate purchases in units and cash required to make purchases in July, August, and September.
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