**Bramble Corporation Financial Overview**Bramble Corporation is a small wholesaler of gourmet food products. Key operational data include:- **Sales Projections**: - $300,000 for November - $280,000 for December - $270,000 for January- **Collections Policy**: - 65% collected in the month of sale - 35% collected in the month following the sale- **Cost of Goods Sold**: - 70% of sales- **Inventory Policy**: - Ending merchandise inventories to equal 60% of the next month's cost of goods sold - Payment for merchandise is made in the month following the purchase- **Monthly Expenses**: - Other expenses paid in cash: $23,600 - Monthly depreciation: $14,600- **Tax Consideration**: - Taxes ignored**Balance Sheet as of October 31**- **Assets**: - Cash: $21,600 - Accounts Receivable: $71,600 - Merchandise Inventory: $126,000 - Property, Plant, and Equipment (Net of $573,600 Accumulated Depreciation): $1,095,600 - **Total Assets**: $1,314,800- **Liabilities and Stockholders' Equity**: - Accounts Payable: $255,600 - Common Stock: $821,600 - Retained Earnings: $237,600 - **Total Liabilities and Stockholders' Equity**: $1,314,800**Note**:The balance sheet reflects the financial position of Bramble Corporation as of October 31. It is essential for understanding the company’s financial health and planning future operations.**Question for Consideration**: The difference between cash receipts and cash disbursements for December would be:(Readers are encouraged to apply the given data to calculate this difference).

The process that a company goes through to ensure that customers pay for the products or services…

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow . Sales are budgeted at $300,000 for November, $280,000 for December, and $270,000 for January . Collections are expected to be 65% in the month of sale and 35% in the month following the sale . The cost of goods sold is 70% 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 $23,600 Monthly depreciation is $14,600 • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,600 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 $ 21,600 71,600 126,000 1,095,600 $ 1,314,800 $ 255,600 821,600 237,600 $ 1,314,800

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow . Sales are budgeted at $300,000 for November, $280,000 for December, and $270,000 for January . Collections are expected to be 65% in the month of sale and 35% in the month following the sale . The cost of goods sold is 70% 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 $23,600 Monthly depreciation is $14,600 • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,600 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 $ 21,600 71,600 126,000 1,095,600 $ 1,314,800 $ 255,600 821,600 237,600 $ 1,314,800

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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Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

**Bramble Corporation Financial Overview**

Bramble Corporation is a small wholesaler of gourmet food products. Key operational data include:

- **Sales Projections**:
- $300,000 for November
- $280,000 for December
- $270,000 for January
- **Collections Policy**:
- 65% collected in the month of sale
- 35% collected in the month following the sale
- **Cost of Goods Sold**:
- 70% of sales
- **Inventory Policy**:
- Ending merchandise inventories to equal 60% of the next month's cost of goods sold
- Payment for merchandise is made in the month following the purchase
- **Monthly Expenses**:
- Other expenses paid in cash: $23,600
- Monthly depreciation: $14,600
- **Tax Consideration**:
- Taxes ignored

**Balance Sheet as of October 31**

- **Assets**:
- Cash: $21,600
- Accounts Receivable: $71,600
- Merchandise Inventory: $126,000
- Property, Plant, and Equipment (Net of $573,600 Accumulated Depreciation): $1,095,600
- **Total Assets**: $1,314,800

- **Liabilities and Stockholders' Equity**:
- Accounts Payable: $255,600
- Common Stock: $821,600
- Retained Earnings: $237,600
- **Total Liabilities and Stockholders' Equity**: $1,314,800

**Note**:

The balance sheet reflects the financial position of Bramble Corporation as of October 31. It is essential for understanding the company’s financial health and planning future operations.

**Question for Consideration**:

The difference between cash receipts and cash disbursements for December would be:

(Readers are encouraged to apply the given data to calculate this difference).

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