Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent.The sales forecast for the next four months follows:
$$\begin{array} { l r }
\text { September } & \$ 65,000 \
\text { October } & 82,000 \
\text { Novernber } & 96,000 \
\text { Decermber } & 102,000
\end{array}$$
Mario's inventory policy is to have ending inventory equal to 1.25 times the cost of sales for the subsequent month, although it is estimated that the cost of inventory at August 31 will be $85,000.
Calculate the purchases budget, in dollars, for the months of September, October, and November.

Question

Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent.The sales forecast for the next four months follows:
 $$\begin{array} { l r } 
\text { September } & \$ 65,000 \
\text { October } & 82,000 \
\text { Novernber } & 96,000 \
\text { Decermber } & 102,000
\end{array}$$ 
Mario's inventory policy is to have ending inventory equal to 1.25 times the cost of sales for the subsequent month, although it is estimated that the cost of inventory at August 31 will be $85,000.
Calculate the purchases budget, in dollars, for the months of September, October, and November.

Quizplus · Accepted Answer

The Answer of Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent.The sales forecast for the next four months follows:
 $$\begin{array} { l r } 
\text { September } & \$ 65,000 \
\text { October } & 82,000 \
\text { Novernber } & 96,000 \
\text { Decermber } & 102,000
\end{array}$$ 
Mario's inventory policy is to have ending inventory equal to 1.25 times the cost of sales for the subsequent month, although it is estimated that the cost of inventory at August 31 will be $85,000.
Calculate the purchases budget, in dollars, for the months of September, October, and November.

Mario's Record Shop, a Retail Store, Has an Average Gross