Monthly sales for the Garden Centre are shown in the table below. Garden Centre Sales Forecast Month Sales January $20,000 February $22,000 March $26,000 April $30,000 May $35,000 June $40,000 The Garden Centre purchases inventory two months in advance. They pay for 50% of the merchandise the month after the purchase, and the other 50% two months after the purchase. The Garden Centre’s gross margin is 40%. What are the Garden Centre’s payments to suppliers in March?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Monthly sales for the Garden Centre are shown in the table below.

Garden Centre
Sales Forecast

Month Sales
January $20,000
February $22,000
March $26,000
April $30,000
May $35,000
June $40,000

The Garden Centre purchases inventory two months in advance. They pay for 50% of the merchandise the month after the purchase, and the other 50% two months after the purchase. The Garden Centre’s gross margin is 40%. What are the Garden Centre’s payments to suppliers in March?

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