Mario's Record Shop, a Retail Store, Has an Average Gross

question 45

Essay

Mario's Record Shop, a retail store, has an average gross profit ratio of 30 percent.The sales forecast for the next four months follows:
$$\begin{array} { l r } \text { September } & \$ 65,000 \\\text { October } & 82,000 \\\text { Novernber } & 96,000 \\\text { Decermber } & 102,000\end{array}$$
Mario's inventory policy is to have ending inventory equal to 1.25 times the cost of sales for the subsequent month, although it is estimated that the cost of inventory at August 31 will be $85,000.
Calculate the purchases budget, in dollars, for the months of September, October, and November.

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Definitions:

Prospectus Approval

The process of getting approval from regulatory authorities for a document offering securities or financial instruments for sale, detailing terms and conditions.

Investment Bank

An organization that assists companies in issuing securities and selling them to investors.

Market

A place or mechanism where buyers and sellers can trade goods, services, securities, or other items of value.

Securities

Financial instruments that represent ownership positions in publicly-traded corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.