Hello, Brooklyn furniture, a retail store, has an average gross profit ratio of 47%.  The sales forecast for the next 4 months follows: July $252,000 August 217,000 September 302,000 October 420,000 Management's inventory policy is to have ending inventory equal to 350% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $401,000. Calculate the purchases budget, in dollars for the months of July and August.   Purchases July ??? August ??? Thanks...

Question

Hello,

Brooklyn furniture, a retail store, has an average gross profit ratio of 47%.  The sales forecast for the next 4 months follows:

July $252,000
August 217,000
September 302,000
October 420,000

Management's inventory policy is to have ending inventory equal to 350% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $401,000.

Calculate the purchases budget, in dollars for the months of July and August.

  Purchases
July

???

August ???

Thanks...

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