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?

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?

Quizplus · Accepted Answer

Merchandise Purchases Budget
 11ea7761_17a6_29a9_81a5_f9a6f592a177_TB2580_00

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