Purpose a merchandise purchases budget

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Reference no: EM1311076

Merchandise purchases budget.

At March 31 Sterling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months:

April.................. 60,000

May...................75,000

June...................90,000

July.....................81,000

Sterling's board of directors has established a policy to commence in April that the inventory at the end of the month should contain 40% of the units required for the following month's budgeted sales.

Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.

Reference no: EM1311076

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