Assume a merchandising company’s estimated sales for January, February, and March are $101,000, $121,000, and $111,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month’s cost of goods sold. What are the required merchandise purchases for January? Multiple Choice   $29,700   $33,740   $36,300   $30,900

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume a merchandising company’s estimated sales for January, February, and March are $101,000, $121,000, and $111,000, respectively. Its cost of goods sold is always 30% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month’s cost of goods sold. What are the required merchandise purchases for January?

Multiple Choice
  •  
    $29,700
  •  
    $33,740
  •  
    $36,300
  •  
    $30,900
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