Walker Entertainment Is a Distributor of Video Games and Expects

question 63

Multiple Choice

Walker Entertainment is a distributor of video games and expects its video game sales to be as follows for the first 4 months of 2014: $$\begin{array} { l l } \text { January } & \$ 100,000 \\\text { February } & \$ 150,000 \\\text { March } & \$ 180,000 \\\text { April } & \$ 200,000\end{array}$$ Walker's cost of goods sold is 70% of sales. Ending inventory is expected to equal 40% of the next month's cost of goods sold. How much are budgeted inventory purchases for February?

• A) $105,000
• B) $113,400
• C) $117,000
• D) $50,400

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