Help Z Mart (a retailer) has the following sales forecast:•January: $550,000..February: $650,000March: $500,000April: $700,000Z Mart has a 25% gross margin percentage. Inventory atJanuary 1 is $75,000. The company intends to keep enoughinventory on hand at the end of each month to cover 25% ofnext month's cost of goods sold.How much inventory (in cost, not units) should Z Mart purchasein January?

Given Data: Sales Forecast:January: $550,000February: $650,000March: $500,000April: $700,000Gross…

Answered: Z Mart (a retailer) has the following…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter22: Master Budget (master)

Section: Chapter Questions

Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...

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MJ Department Store expects to generate the following sales figures for the next three months: July $480,000 August $560,000 September $600,000 MJ's gross profit (margin) rate is 45% of sales dollars. At the end of each month, MJ wants a merchandise inventory balance equal to 30% of the following month's expected sales, stated at cost. What dollar amount of merchandise inventory should MJ plan to purchase in August? a. $257,400 b. $314,600 c. $320,000 d. $327,800
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