Answer the Following Questions Using the Information Below:
Beerwah Company

question 155

Multiple Choice

Answer the following questions using the information below:
Beerwah Company provides the following data for next year:
$$\begin{array} { l r } \text { Month } & \text { Budgeted Sales } \\\text { January } & \$ 160000 \\\text { February } & 144000 \\\text { March } & 176000 \\\text { April } & 192000\end{array}$$ The gross profit rate is 40% of sales.Inventory at the end of December is $21 600 and target ending inventory levels are 30% of next month's sales,stated at cost.
-Purchases budgeted for January total:

• A)$72 000.
• B)$74 160.
• C)$100 320.
• D)$130 800.

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Definitions:

Self-Sufficiency

The ability to fulfill all of one's needs without external assistance.

Merchandise Trade Balance

The difference between a country's exports and imports of tangible goods.

Services Trade Balance

The difference between exports and imports of services of a country, reflecting whether a country is a net provider or consumer of services internationally.

Adam Smith

An 18th-century economist known as the father of modern economics, famous for his theories on free markets and the 'invisible hand'.