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ValentinkaMS [17]
2 years ago
13

May Corporation, a merchandising firm, has budgeted sales as follows for the third quarter of the year:

Business
1 answer:
Tema [17]2 years ago
7 0

Answer:

Purchases= $63,050

Explanation:

Giving the following information:

Sales:

July $80,000

August $90,000

September $70,000

The cost of goods sold is equal to 65% of sales.

The company wants to maintain a monthly ending inventory equal to 130% of the Cost of Goods Sold for the following month.

The inventory on June 30 is less than this ideal since it is only $65,000.

To calculate the purchases for July, we need to use the following formula:

Purchases= sales + desired ending inventory - beginning inventory

Purchases= 80,000*0.65 + (90,000*0.65)*1.3 - 65,000

Purchases= $63,050

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Answer:

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  • d. Due to global warming, working conditions on farms have become undesirable for more and more people.
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With workers getting older and being unable to be as productive as they used to be, they will have to drop out of industries that require physical strength including farming. This will therefore reduce people working in agriculture.

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