Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $1.00 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,300 February 17,600 March 13,400 April 13,200 May 8,700 June 6,300 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $1.00 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months: January 12,300 February 17,600 March 13,400 April 13,200 May 8,700 June 6,300 Required: a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Midland Company buys tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock equal to the tiles needed for three months’ sales. The tiles cost $1.00 each and must be paid for in cash. The company has 29,000 tiles in stock. Sales estimates, based on contracts received, are as follows for the next six months:
| January | 12,300 | ||
| February | 17,600 | ||
| March | 13,400 | ||
| April | 13,200 | ||
| May | 8,700 | ||
| June | 6,300 | ||
Required:
a. & b. Estimate purchases (in units) and cash required to make purchases in January, February, and March.
Transcribed Image Text:MIDLAND COMPANY
Merchandise Purchases Budget
For the Period Ended March 31
(in units)
January
February
March
Units to be purchased
Estimated cost
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