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Question - Homestyle Interiors sells a variety of home furnishings including sleeper sofas. At 31 March, the company had 400 sofas in inventory. The company's policy is to maintain a sleeper sofa inventory equal to 2 per cent of next month's sales. The company expects the following sales activity for the second quarter of the year:
April 1000 sofas
May 1400 sofas
June 2000 sofas
What is the projected production for May?
1468 sofas
1332 sofas
1412 sofas
1388 sofas
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A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days. Which of the following items would be increased by this inventory purchase transaction?
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