## Answers

Merchandise purchases budget

April | may | June | |

Next month budgeted sales | 1290000 | 520000 | 1710000 |

Ratio of inventory to future sales | 40% | 40% | 40% |

Desired ending inventory | 516000 | 208000 | 684000 |

Budgeted sales | 1680000 | 1290000 | 520000 |

Total | 2196000 | 1498000 | 1204000 |

Less: Beginning inventory | -230000 | -516000 | -208000 |

Required purchase | 1966000 | 982000 | 996000 |

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