Reference no: EM13965578
Given the following information, answer questions using the Stock to Sales Ratio Method. (6 Points) ?Seasonal Sales Forecast of $100,000 (April-June) ?April = 30% May = 30% June = 40% ?Constant Stock/Sales Ratio of 4 ?Planned reduction of 20% allocated in the same proportion of monthly sales ?
?a)?What are beginning inventory (B.I) levels for: ? ?April ___________________ ? ?May ___________________ ? ?June ___________________ ?
b) What are Planned Purchases for May, to prepare for June, at the forecasted levels of Sales and Reductions? ? ?
c) ?If actual sales for May were $40,000 and Reductions were $4,000, what are planned purchases for May to prepare for June?
d) If $6,000 is presently being shipped and an additional $4,000 is already placed on orders ($10,000 total in commitments), how much am I open to buy from the above $40,000 sales and $4,000 Reductions assumptions?
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