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 11ea7998_5d6e_4969_911b_c11ec1d6f777_TB2627_00_TB2627_00

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