Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months sales. The tiles cost $1.00 each and must be paid for in cash. The company has 27,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:

January		12,000
February		18,300
March		14,200
April		15,100
May		9,600
June		7,000

Required:

a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.

MIDLAND COMPANY Merchandise Purchases Budget For the Period Ended March 31 (in units) January February Units to be purchased March Estimated cost