Freighters Ltd Has the Following Budgeted Figures Calculate the Budgeted Purchases for the Month of January

Multiple Choice

Freighters Ltd has the following budgeted figures:
$$\begin{array} { | l | l | l | l | l | } \hline & \text { January } & \text { February } & \text { March } & \text { April } \\\hline \text { Sales } & \$ 57,500 & \$ 63,000 & \$ 89,000 & \$ 94,000 \\\hline \text { Cost of sales } & 50 \% \text { of sales } & & & \\\hline \text { Required } & \$ 20,000 + 25 \% & & & \\\text { ending } &\text { of next month's } \\\text { inventory }&\text {sales} & & \\\hline \text { Inventory on } & & & & \\\text { hand on 1 Jan } & \$ 27,500 & & & \\\hline\end{array}$$
Calculate the budgeted purchases for the month of January.

A) $37,000
B) $7000
C) $35,750
D) $64,500