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 $0.75 each and must be paid for in cash. The company has 28,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:

January		13,200
February		17,300
March		13,800
April		14,000
May		9,500
June		7,800

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 March 98,900 Units to be purchased Estimated cost