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Audrey Rebu
Aug 23, 2012, 06:56 PM
Cost of Sales

Purchasing costs average 60% of sales. Purchases are enough to cover the next month's sales and all purchase are paid in the month of purchase.

Sales:
September 380,000
October 520,000
November 450,000
December 550,000
January 650,000

How do I calculate the purchases? I am trying to do a cash budget for the three months of oct - Dec.

Thanks

paraclete
Aug 23, 2012, 07:53 PM
Carefully read the data then multipy the sales numbers by the percentage cost you are given