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Problem
Brooklyn Furniture, a retail store, has an average gross profit ratio of 48%. The sales forecast for the next four months follows:
May $ 271,000 June 216,000 July 300,000 August 404,000
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 April 30 will be $412,000.
Required:
Calculate the purchases budget, in dollars, for the months of May and June.
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