Sales Forecast and Cash Budget
($000,000s)

-Referring to Schwety,what are Schwety's raw materials purchases in January?

Name: Sales Forecast and Cash Budget ($000,000s) -Referring to Schwety,what are Schwety's raw materials purchases in January?
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Question

Sales Forecast and Cash Budget
($000,000s)
 
-Referring to Schwety,what are Schwety's raw materials purchases in January?

Quizplus · Accepted Answer

As stated in the question, Schwety purchases raw materials one month in advance and cost of goods sold is 45% of expected sales.
Purchases in January = 0.45 × February Sales
Purchases in January = 0.45 × $11.3
Purchases in January = $5.09