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 26,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:

January		12,600
February		17,500
March		14,100
April		14,300
May		9,400
June		7,700

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
Units to be purchased
Estimated cost