The Pinsky Company Has the Following Information Available The Gross Profit Rate Is 40% and the Desired Ending

question 84

Essay

The Pinsky Company has the following information available:
$\begin{array}{ll}\text { Month }&\text { Budgeted Purchases }\\\text { March } & \$ 150,000 \\\text { April } & 153,000 \\\text { May } & 151,000 \\\text { June } & 254,500 \\\text { July } & 252,500\end{array}$
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases and cost of goods sold budget for April,May and June.

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Definitions:

Current

Pertains to the present time or most recent period.

Deferred Tax Liabilities

Future tax obligations that arise due to temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

Inventories

Commodities ready for disposition in the routine conduct of a company, those in the pipeline for selling, or as consumables or provisions in the course of production or during service provision.

Statement of Financial Position

A financial statement that displays an entity's assets, liabilities, and equity at a specific point in time, providing insight into its financial health.