Dakota Layne Is Opening Up "Layne's Women's Fashions" on April

Dakota Layne is opening up "Layne's Women's Fashions" on April 1. Dakota's sales forecast for the Spring/Summer of Year 1 is shown in the top row of the table. She is going to purchase her merchandise 2 months in advance and her cost of goods sold is 70% of sales. Assume that Dakota has a starting inventory of $21,700 at the beginning of June. What is Dakota Layne's Ending Inventory Balance in June? Sales and Purchase Forecast
Layne's Women's Fashion
$$\begin{array} { | l | c | c | c | c | } \hline & \text { May } & \text { June } & \text { July } & \text { August } \\\hline \text { Sales Forecast } & \$ 12,000 & \$ 15,000 & \$ 16,000 & \$ 18,000 \\\hline \text { Purchases from } & & & & \\\text { Suppliers } & & & & \\\hline & & & & \\\hline \text { Beginning Inventory } & & \$ 21,700 & & \\\hline \text { Plus: Additions } & & & & \\\hline \text { Less: Cost of Goods } & & & & \\\text { Sold } & & & & \\\hline \text { Ending Inventory } & & & & \\\hline\end{array}$$

A) $19,800
B) $22,000
C) $22,400
D) $23,800
E) $25,300