BW Department Store expects to generate the following sales for the next three months: BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?

Question

BW Department Store expects to generate the following sales for the next three months:  BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?

Quizplus · Accepted Answer

Merchandise Purchases Budget
 11eacbfc_c5d3_2e70_8ffe_07f6db90b790_TB7552_00

BW Department Store Expects to Generate the Following Sales for the Next