The Hurley lCompany's actual November and December unit sales and estimated unit sales for the following four months as follows: November Actual 6,700 December - Actual 9,800 January Estimated 6,200 February 8,900 March 6,600 April 7,1100 The company's inventory policy is to hold enough inventory at the end of the month to meet 30% of next month's sales requirements. Each inventory item costs $1.25. ICash disbursement on purchases is made as follows: 40% is paid in the month of purchase and 60% is paid in the month following purchase. Each items sells for $4.00 and cash collection patterns are as follows: % of sales made for cash 20% Credit sales are collected as follows In the month of sale 35% In the month following sale 40% In the second month following sale 23% Uncollectible 2% Required - a] Estimate the purchases (in units] for the months of January through March. 4 I Cost Volume Profit Analysis Problems and Exercises