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Wallace Company provides the following data for next year: The gross profit rate is 25% of sales. Inventory at the end of December is $28,600

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Wallace Company provides the following data for next year: The gross profit rate is 25% of sales. Inventory at the end of December is $28,600 and target ending inventory levels are 10% of next month's sales, stated at cost. What is the amount of purchases budgeted for January? $95,250 $75,425 $86,475 $104,025

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