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Assume a merchandising company’s estimated sales for January, February, and March are $102,000, $122,000, and $112,000,...

Assume a merchandising company’s estimated sales for January, February, and March are $102,000, $122,000, and $112,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month’s cost of goods sold. What are the required merchandise purchases for January?

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JANUARY FEBRUARY MARCH $ 102,000 $122,000 $112,000 $ 35,700 $ 42,700 $ 39,200 PARTICULARS a) Total Sales b) Cost Of goods Sol

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