BW Department Store Expects to Generate the Following Sales for the Next

question 135

Multiple Choice

BW Department Store expects to generate the following sales for the next three months: BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?

• A) $330,000
• B) $314,600
• C) $352,800
• D) $327,800

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Definitions:

Brazil

A large country in South America known for its diverse culture, rainforests, and significant contributions to global agriculture, soccer, and music.

United States

A country in North America, comprised of 50 states, a federal district, and several territories, known for its democratic government and diverse population.

Mariel Boat Lift

A mass emigration of Cubans to the United States in 1980, with around 125,000 people leaving Cuba from the port of Mariel to Florida.

Cubans

People originating from Cuba or of Cuban descent.