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?
A) $330,000
B) $314,600
C) $352,800
D) $327,800

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?
A) $330,000 
B) $314,600 
C) $352,800 
D) $327,800

Quizplus · Accepted Answer

The Answer of 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?
A) $330,000 
B) $314,600 
C) $352,800 
D) $327,800

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