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KLM plans to maintain its inventory at 10% of the following months costs of goods sold.

Question 22 18 pts KLM Furniture, a company that began operations this year, provides the following information: January Budget February Budget Sales $50,000 $52,000 Cost of Goods Sold is expected to be 50% of Sales. KLM plans to maintain its inventory at 10% of the following month's cost of goods sold. Inventory purchases are all on account. 40% of the purchases are paid for in the month of purchase and 60% are paid for in the following month Required: A. What is the budgeted cost of goods sold for January? B. What is the budgeted cost of goods sold for February? C. How much inventory will the company need to purchase in KLM plans to maintain its inventory at 10% of the following month's cost of goods sold. Inventory purchases are all on account. 40% of the purchases are paid for in the month of purchase and 60% are paid for in the following month. Required: A. What is the budgeted cost of goods sold for January? B. What is the budgeted cost of goods sold for February? C. How much inventory will the company need to purchase in January? D. How much cash will the company need to pay for inventory in January? E. On the pro-forma balance sheet at January 31, how much Inventory will the company expect to have? F. On the pro-forma balance sheet at January 31, how much will the company's Accounts Payable be? BIVAA

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