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Question - Purchases budget
Brooklyn Furniture, a retail store, has an average gross profit ratio of 46%. The sales forecast for the next four months follows:
July - $250,000
August - 220,000
September - 310,000
October - 400,000
Management's inventory policy is to have ending inventory equal to 300% of the cost of sales for the subsequent month, although it is estimated that the cost of inventory at June 30 will be $410,000.
Required: Calculate the purchases budget, in dollars, for the months of July and August.
On January 1 of the current year, Engel Company purchases 100% of Ball Company for $8.4 million. What impact does the impairment of goodwill
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