Dakota Layne is opening up "Layne's Women's Fashions" on April 1.Dakota's sales forecast for the Spring/Summer is shown in the top row of the table.She is going to purchase her merchandise 2 months in advance and her cost of goods sold is 70% of sales.What are Dakota Layne's purchases in May?
Sales and Purchase Forecast
Layne's Women's Fashions

Question

Quizplus · Accepted Answer

As stated in the question, all purchases are made two months in advance and COGS is 70% of sales.
Purchases in May = July Sales × COGS
Purchases in May = $16,000 × 0.70
Purchases in May = $11,200

Dakota Layne Is Opening Up "Layne's Women's Fashions" on April