Question - The Rob Wallace Corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. All goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending inventory of $12,000 is desired. Beginning accounts payable is $52,000.
How much merchandise inventory will The Rob Wallace Corporation need to purchase next month?
a. $250,000
b. $190,000
c. $246,000
d. $400,000