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Part VI. Purchases Budget (10 Points) Dana's Dance Shop began its operations in January of the current year. Dana's Dance Shop had budgeted sales of
Part VI. Purchases Budget (10 Points) Dana's Dance Shop began its operations in January of the current year. Dana's Dance Shop had budgeted sales of 5,000 units for January, 6,000 units for February, and 7,500 units for March, and 6,500 units for April. Dana likes to keep an ending inventory balance of 30% of next month's sales on hand at the end of every month. Dana pays $5 per unit from her supplier. All purchases are credit purchases and are paid for as follows: 20% in the month of purchase, 50% in the following month, and 30% two months after purchase Prepare the purchases budget for January thru March
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