Walker Entertainment Is a Distributor of Video Games and Expects

question 52

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 2017: $$\begin{array} { l l } \text { January } & \$ 100,000 \\\text { February } & \$ 150,000 \\\text { March } & \$ 180,000 \\\text { April } & \$ 200,000\end{array}$$ 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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Definitions:

New-Product Adopter

An individual or entity that purchases or uses a new product relatively early in its introduction to the market.

Physical

Pertaining to the material world or the body, as opposed to the mind or virtual processes.

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the material welfare of human society.