JT Department Store expects to generate the following sales for the next three months: JT's cost of gods sold is 60% of sales dollars.At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold.What dollar amount of merchandise inventory should JT plan to purchase in August?

Question

JT Department Store expects to generate the following sales for the next three months:  JT's cost of gods sold is 60% of sales dollars.At the end of each month, JT wants a merchandise inventory balance equal to 20% of the following month's expected cost of goods sold.What dollar amount of merchandise inventory should JT plan to purchase in August?

Quizplus · Accepted Answer

Merchandise Purchases Budget
 11eaa0c8_94e2_b45d_9cb2_fb36f8f6a3d0_TB2487_00

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