Bramble Corporation is a small wholesaler of gourmet food products Data regarding the store's operations follow Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 for January • Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 75% of sales • The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold Payment for merchandise is made in the month following the purchase • Other monthly expenses to be paid in cash are $23.100. Monthly depreciation is $14100 Ignore taxes Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,100 accumulated depreciation Total assets Liabilities and Stockholders' Equity. Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity December cash disbursements for merchandise purchases would be Mutiple Choice O O $107.250 $177750 Balance Sheet October 31 $172.500 $167625 $ 22,100 72,100 121,075 1,096,100 $ 1,312,175 $ 256,100 822,100 233,975 $1,312,175

Bramble Corporation is a small wholesaler of gourmet food products Data regarding the store's operations follow Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 for January • Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 75% of sales • The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold Payment for merchandise is made in the month following the purchase • Other monthly expenses to be paid in cash are $23.100. Monthly depreciation is $14100 Ignore taxes Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,100 accumulated depreciation Total assets Liabilities and Stockholders' Equity. Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity December cash disbursements for merchandise purchases would be Mutiple Choice O O $107.250 $177750 Balance Sheet October 31 $172.500 $167625 $ 22,100 72,100 121,075 1,096,100 $ 1,312,175 $ 256,100 822,100 233,975 $1,312,175

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $460,000 for November, $440,000 for December, and $430,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $25,200. Monthly depreciation is $16,200. Ignore taxes. Balance SheetOctober 31 Assets Cash $ 20,000 Accounts receivable 70,000 Merchandise inventory 153,000 Property, plant and equipment, net of $572,000 accumulated depreciation 1,094,000 Total assets $ 1,337,000 Liabilities and Stockholders' Equity Accounts payable $ 254,000 Common stock 820,000 Retained earnings…
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