Hello, Brooklyn furniture, a retail store, has an average gross profit ratio of 47%. The sales forecast for the next 4 months follows: July $252,000 August 217,000 September 302,000 October 420,000 Management's inventory policy is to have ending inventory equal to 350% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $401,000. Calculate the purchases budget, in dollars for the months of July and August. Purchases July ??? August ??? Thanks...
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Hello,
Brooklyn furniture, a retail store, has an average gross profit ratio of 47%. The sales
| July | $252,000 |
| August | 217,000 |
| September | 302,000 |
| October | 420,000 |
Management's inventory policy is to have ending inventory equal to 350% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $401,000.
Calculate the purchases budget, in dollars for the months of July and August.
| Purchases | |
| July |
??? |
| August | ??? |
Thanks...
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