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Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it expects to sell an average of 50 t- shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year.

Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it expects to sell an average of 50 t- shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with show all calculation thanku 

Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it expects to sell an average of 50 t- shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year.
Transcribed Image Text:Annie's Homemade buys branded t-shirts from a supplier for $12.00 each and sells them to customers for $20.00 apiece. Next year, it expects to sell an average of 50 t- shirts per month and hopes the following year's unit sales will grow by 20%. This year's ending inventory includes 120 t-shirts and the company expects next year's ending inventories to equal 25% of the following year's sales. Required: Prepare a merchandise purchases budget for next year.
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