Argyle Company Forecasts Sales of $50 000 in January, $60

question 19

Multiple Choice

Argyle Company forecasts sales of $50 000 in January, $60 000 in February, $70 000 in March, and $75 000 in April. The inventory balance at 1 January is $12 000. Cost of sales is budgeted at 40% of sales revenue. Argyle wishes to have inventory levels at the end of each month equal to 60% of the cost of sales for the following month, plus a "safety cushion" of $1 000. How much should be budgeted for inventory purchases in January?

• A)$23 400
• B)$26 400
• C)$22 100
• D)$21 000

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Definitions:

Subordinate Thoughts

Secondary or less important ideas that support or are related to the main thought in a discourse.

Passive Voice

A grammatical construction where the subject of the sentence is acted upon by the verb, often de-emphasizing the actor.

Sounding Accusatory

The perception that one's language or tone implies blame or accusation towards someone else, often negatively impacting communication.

Active Voice

A sentence construction where the subject performs the action expressed by the verb, making the statement clear and direct.