Good Morning Sunshine is a wholesaler of coffee makers. In 2012, actual June sal

Question

Good Morning Sunshine is a wholesaler of coffee makers. In 2012, actual June sales revenue totaled $300,000. July's sales are expected to increase 10% over June's sales. August's sales are expected to increase 15% over July's sales. Prices are set to achieve a 40% gross profit. The company wants to maintain an ending merchandise inventory equal to 15% of the next month's cost of goods sold. This requirement was met on July 1st. The company's budgeted purchases for the month of July are $. (round to the nearest dollar)

Explanation / Answer

July Sales 330000 =300000*1.1 Cost of goods sold 198000 =330000*(1-0.4) Add: Ending inventory 34155 =(330000*1.15)*(1-0.4)*15% Less: Beginning inventory 29700 =(330000)*(1-0.4)*15% Budgeted purchases for July 202455

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