Incomplete Data on Sales. The following information pertains to merchandise purchased by Westwood Plumbing Co. for July, August, September, and October. During any month, 60 percent of the merchandise to be sold in the following month is purchased. The balance of the merchandise is purchased during the month of sale. Gross margin averages 20 percent of sales.
Purchases
For the Following Month For the Current Month
July $87,000 $92,000
August $96,000 $100,000
September $120,000 $89,000
October $110,000 $92,000
Estimate the sales revenue for August, September, and October.
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