Question:
MJ Department Store expects to generate the following sales figures for the next three months:
July August September
Expected sales $480,000 $560,000 $600,000
MJ's gross profit 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?