Barker Office Supply Store is budgeting for the fiscal year ending March 31,2020.During the fiscal year ended March 31,2019,sales totaled $1,200,000 and cost of goods sold was $660,000.At March 31,2019,inventory was $200,000.During the upcoming fiscal year,Barker estimates that cost of goods sold will increase by 9% and that ending inventory will be $225,000.
Required: How much inventory should Barker purchase during the fiscal year ending March 31,2020? Show your well-labeled computations.

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The Answer of Barker Office Supply Store is budgeting for the fiscal year ending March 31,2020.During the fiscal year ended March 31,2019,sales totaled $1,200,000 and cost of goods sold was $660,000.At March 31,2019,inventory was $200,000.During the upcoming fiscal year,Barker estimates that cost of goods sold will increase by 9% and that ending inventory will be $225,000.
Required: How much inventory should Barker purchase during the fiscal year ending March 31,2020? Show your well-labeled computations.

Barker Office Supply Store Is Budgeting for the Fiscal Year