Inventory purchases in January equals:
-$12,000 - Inventory on hand at January 1st
20,000 - Needed in January ($40k in sales times 40% COGS)
14,000 - Needed in January for February sales ($60k x 40% COGS x 60% of this in January)
1,000 - Safety Cushion
= 23,400 Purchased in January
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