Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 19,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the three most recent months follow.
|
Sales (Units) |
Purchases (Units) |
| July |
170,000 |
186,000 |
| August |
330,000 |
326,000 |
| September |
290,000 |
280,000 |
|
1. Prepare the company's merchandise purchases budget for the months of July, August and September.