Merchandise purchases budget.
At March 31 Sterling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months:
April.................. 60,000
May...................75,000
June...................90,000
July.....................81,000
Sterling's board of directors has established a policy to commence in April that the inventory at the end of the month should contain 40% of the units required for the following month's budgeted sales.
Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.