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 30,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,000 February 16,900 March 13,800 April 14,000 May 10,600 June 6,500 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.

8 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 30,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: 2 points January February March April May June 12,000 16,900 13,800 14,000 10,600 6,500 eBook Print 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 Estimated cost March