D&J Furniture, a retail store, has an average gross profit ratio of 48%. The sales forecast for

Question:

D&J Furniture, a retail store, has an average gross profit ratio of 48%. The sales forecast for the next four months follows:

Management’s inventory policy is to have ending inventory equal to 200% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at February 28 will be $140,000.

Required:
Calculate the purchases budget, in dollars, for the months of March and April.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Accounting What The Numbers Mean

ISBN: 9781264126743

13th Edition

Authors: David Marshall

See More Books

Question Posted: Nov 02, 2022 07:37 AM

See More Questions

Brooklyn Furniture, a retail store, has an average gross profit ratio of 46%. The sales forecast for the next four months follows: Management's inventory policy is to have ending inventory equal to...
Brooklyn Furniture, a retail store, has an average gross profit ratio of 42%. The sales forecast for the next four months follows: May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
A retail store has a preferred customer plan where customers may earn discounts on all their purchases. The amount of a customer's discount is determined by the amount of the customer's cumulative...
Find the derivative of the function. y = e 2x tan 2x
Describe occupational fraud and abuse.
For the following exercises, eliminate the parameter t to rewrite the parametric equation as a Cartesian equation. x(t) = et |y(t) = e6t
Many single women and married couples use donated sperm to conceive children each year. Pennsylvania resident Donna Donovan decided to use donated sperm from Idant Laboratories, a New York sperm bank...
Abica Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the...
Risk of entry Bargaining power of suppliers Bargaining power of buyers Threat of substitutes Power of complement providers Rivalry among established firms in industry Which of the above forces are...
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit sales 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 30,000 31,000 23,000 28,000 The company's...
Precious Stones Ltd. is a retail jeweler. Most of the firms business is in jewelry and watches. The firms average gross profit ratio for jewelry and watches is 70% and 40%, respectively. The sales...
Lakeway Manufacturing Co. manufactures and sells household cleaning products. The companys research department has developed a new cleaner for which a standard cost must be determined. The new...
Murcia Corporation has $4,000,000 of 9.5 percent, 25-year bonds dated May 1, 2009, with interest payable on April 30 and October 31. The companys fiscal year ends on December 31, and it uses the...
In regard to Project Work, which activity refers to reviewing the progress and capturing project performance data with reference to the project plan, developing performance measures, and...
What is meant by lean procurement and how does it relate to project management?
All of these are components of a work flow diagram called the SIPOC model except: a. customer b. process c. input d. support
Total Quality Costs are comprised of the costs of all of the following EXCEPT: a. prevention b. appraisal c. management d. external Failure
What are the four core project quality concepts?
A cattle farmer sees a sore on the leg of one of his cows. The farmer feels the sore and notices that the area just around the sore is warm to the touch. A veterinarian examines the wound and...
What can scientists learn by comparing the fossilized skeletons of extinct primates with the bones of modern species?
Capital budgeting analysis involves the use of many estimates. Required: For each of the following estimation errors, state whether the net present value of the project will be too high or too low:...
National Leasing is evaluating the cost of capital to use in its capital budgeting process. Over the recent past, the company has averaged a return on equity of 12% and a return on investment of 9%....
South Bay Manufacturing Ltd. is considering the investment of $230,000 in a new machine. The machine will generate cash flow of $40,000 per year for each year of its eight-year life and will have a...
Provide an overview of 3 key insights you can find via research on the internal capabilities of the company Amazon. What are they known to be good at? How does the company operate with what...
Go to Google Ads Click on the "New Campaign" tab and open the drop-down menu. What are the major types of campaigns you can run on this platform? How would you use Goods Ads to elevate your search...
When writing an article or a post, you need to make it easy for people to follow your narrative. You must have a solid structure that readers recognize so they know what to expect. For many people...

D&J Furniture, a retail store, has an average gross profit ratio of 48%. The sales forecast for

Question:

March .... April ..... May .. June .... ..... ...... $125,000 110,000 155,000 200,000

Step by Step Answer:

Sales forecast Cost of sales 52 Purchases budget Beginning inventory Purchases Cost of merchan...View the full answer

Accounting What The Numbers Mean

Students also viewed these Business questions