Problem 1

MARCELO CORP has budgeted the following sales for the third quarter of 2011:

Month Sales July 1,300,000.00 August 2,600,000.00 September 2,000,000.00 Other budgeted estimates are as follows: All merchandise is selling at its invoice cost plus 30% mark up. Beginning inventories of each month are budgeted at 20% of that particular month's projected Cost of goods sold. Based on the data given, what is the projected merchandise purchase for the month of July 2011