Based on the provided information, what is the open-to-buy amount for July if BOMI is $50,000 and COGS is $12,000?

To calculate the open-to-buy amount for July, you start with the beginning of month inventory (BOMI) and account for the cost of goods sold (COGS) for that month. Open-to-buy can be expressed with the following formula:

Open-to-Buy = BOMI - COGS

In this case, the BOMI is $50,000 and the COGS is $12,000.

When you perform the calculation:

Open-to-Buy = $50,000 - $12,000 = $38,000

This means that after accounting for the COGS from the BOMI, a total of $38,000 remains available for purchasing additional inventory or allows for better inventory planning for the month ahead.

The correct answer illustrates the concept of managing inventory effectively, ensuring that business operations can maintain a good stock of merchandise while responding to sales activity efficiently.