Problem:
Cola inc. is working on their budget for next year. COGS has been estimated at 60% of sales. Water purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20% of sales and are paid during the month of sale. Other operating costs amounting to 25% of sales are to be paid in the month following sales. Sales revenue is forecasted:
Feb $220,000
March $225,000
April $240,000
May $250,000
June $255,000
What is the amount of water purchased during the month of March?