An entity has many reasons to repurchase its own shares. These include meeting the needs created by potential mergers or pension and profit-sharing plans. Also, management may want to buy out a dissident shareholder. Sometimes, an entity has excess cash and can find no better investment than its own shares. Moreover, management may believe the shares are selling for a low price for no apparent reason. Thus, a purchase may not only be a good investment but may also support the market price of the shares.

An important management challenge is to integrate the planning, design, and implementation of complex application systems with the strategy of the organization, which will permit the best possible response to quickly changing information requirements.

Cost of goods sold equals beginning inventory, plus purchases including freight-in minus ending inventory. Given that sales reflect 125% of cost, cost of goods sold must equal US $720,000$900.000 sales Consequently the beginning inventory must been US $85,000$720,000 CGS $80,000 E- $690,000 purchases - $25,000 freight-in)