Calculate the purchases budget in dollars

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Reference no: EM131293702

Brooklyn Furniture, a retail store, has an average gross profit ratio of 45%. The sales forecast for the next four months follows:

May $ 271,000

June 218,000

July 321,000

August 424,000

Management's inventory policy is to have ending inventory equal to 320% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at April 30 will be $414,000.

Required:

Calculate the purchases budget, in dollars, for the months of May and June.

May Purchases:

June Purchases:

Reference no: EM131293702

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