(SOLVED) Toys Plus prepares budgets to help manage the company Toys


Question Description:

$19

Toys Plus prepares budgets to help manage the company. Toys Plus is budgeting for the fiscal year ended January 31, 2010.During the preceding year ended January 31, 2009, sales totaled $9,300 million and cost of goods sold was $6,500 million. At January 31, 2009, inventory stood at $2,100 million. During the upcoming 2010 year, suppose Toys Plus expects cost of goods sold to increase by 10%. The company budgets next years ending inventory at $2,400 million.Requirement1. One of the most important decisions a manager makes is how much inventory to buy.How much inventory should Toys Plus purchase during the upcoming year to reach its budgeted figures?

Answer

$19