Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $360,000 for November, $340,000 for December, and $330,000 for January . Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 85% of sales. . The company would like to maintain ending merchandise inventories equal to 75% 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 $24,200. • Monthly depreciation is $15,200. Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,200 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total Liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: $ 20,200 70,200 229,500 1,094,200 $1,414,100 $ 254,200 820,200 339,700 $1,414,100

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $360,000 for November, $340,000 for December, and $330,000 for January . Collections are expected to be 50% in the month of sale and 50% in the month following the sale. The cost of goods sold is 85% of sales. . The company would like to maintain ending merchandise inventories equal to 75% 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 $24,200. • Monthly depreciation is $15,200. Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,200 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total Liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: $ 20,200 70,200 229,500 1,094,200 $1,414,100 $ 254,200 820,200 339,700 $1,414,100

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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