Brooklyn Furniture, a retail store, has an average gross profit ratio of 49%. The sales...
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Accounting
Brooklyn Furniture, a retail store, has an average gross profit ratio of 49%. The sales forecast for the next four months follows:
July $ 263,000
August 202,000
September 301,000
October 406,000
Management's inventory policy is to have ending inventory equal to 380% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $403,000. Required: Calculate the purchases budget, in dollars, for the months of July and August.
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