Amount of purchases should this company budget


A company's gross profit rate is 30% of sales. Expected January sales are $78,000 and desired January 31st inventory is $7,500. Assuming the December 31st inventory is $6,200 what amount of purchases should this company budget for the month of January?

a) $55,900

b) $79,300

c) $53,300

d) $24,700

e) $22,100

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Accounting Basics: Amount of purchases should this company budget
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