On Dec 31, 2011, Yellow HArdware has inventory of $30,000. The owner wants to increase inventory on hand to $35,000 on Dec XXXXXXXXXXIf net sales for 2012 are expected to be 150,000 and the gross...

On Dec 31, 2011, Yellow HArdware has inventory of $30,000. The owner wants to increase inventory on hand to $35,000 on Dec 31 2012. If net sales for 2012 are expected to be 150,000 and the gross profit is expected to be 35% of net sales, compute the net cost of merchandise the owner should expect to purchase during 2012.