(Solution) - Toyland prepares budgets to help manage the company Toyland is -(2025 Original AI-Free Solution)

Paper Details

Toyland prepares budgets to help manage the company. Toyland is budgeting for the fiscal year ended January 31, 2016. During the preceding year ended January 31, 2015, sales totaled $9,600 million and cost of goods sold was $6,800 million. At January 31, 2015, inventory was $1,600 million. During the upcoming 2016 year, suppose Toyland expects cost of goods sold to increase by 14%. The company budgets next year's ending inventory at $1,900 million.
Requirement
1. One of the most important decisions a manager makes is how much inventory to buy. How much inventory should Toyland purchase during the upcoming year to reach its budget?