A Company forecasts sales of $91,500 for the quarter ended December 31.Its gross profit rate is 18% of sales,and its September 30 inventory is $25,000.If the December 31 inventory is targeted at $7,500,budgeted purchases for the fourth quarter should be:
A) $57,530
B) $107,530
C) $0
D) $82,530
E) $91,000

Question

Quizplus · Accepted Answer

Budgeted purchases = $7,500 + (82% x $91,500) - $25,000 = $57,530

A Company Forecasts Sales of $91,500 for the Quarter Ended