Barker Office Supply Store is budgeting for the fiscal year ending March 31, 2018. During the fiscal year ended March 31, 2017, sales totaled $1,200,000 and cost of goods sold was $660,000. At March 31, 2017, inventory was $200,000. During the upcoming fiscal year, Barker estimates that cost of goods sold will increase by 9% and that ending inventory will be $225,000.
Required: How much inventory should Barker purchase during the fiscal year ending March 31, 2018? Show your well-labeled computations.

Question

Quizplus · Accepted Answer

The Answer of Barker Office Supply Store is budgeting for the fiscal year ending March 31, 2018. During the fiscal year ended March 31, 2017, sales totaled $1,200,000 and cost of goods sold was $660,000. At March 31, 2017, inventory was $200,000. During the upcoming fiscal year, Barker estimates that cost of goods sold will increase by 9% and that ending inventory will be $225,000.
Required: How much inventory should Barker purchase during the fiscal year ending March 31, 2018? Show your well-labeled computations.

Barker Office Supply Store Is Budgeting for the Fiscal Year