MJ Department Store expects to generate the following sales figures for the next three months:
July
August
September
Expected sales
$476,000
$558,000
$604,000
MJ's gross profit rate is 44% 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?
$316,208
$320,208
$358,208
$333,208
1 answer
Sorry, but if you are trying to "cut and paste" it will not work here. You will need to retype everything. Then come back and be sure it all posted.