Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January. • Collections are expected to be 80% in the month of sale and 20% 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 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 $24,000. • Monthly depreciation is $15,000. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,000 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: $ 20,000 70,000 153,000 1,094,000 $ 1,337,000 $ 254,000 820,000 263,000 $ 1,337,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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TB MC Qu. 8-121 (Static) Bramble Corporation is a small wholesaler of ...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
• Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January.
• Collections are expected to be 80% in the month of sale and 20% 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 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 $24,000.
• Monthly depreciation is $15,000.
• Ignore taxes.
Assets
Cash
Balance Sheet
October 31
Accounts receivable
Merchandise inventory
Property, plant and equipment, net of $572,000 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:
$ 20,000
70,000
153,000
1,094,000
$ 1,337,000
$ 254,000
820,000
263,000
$ 1,337,000
Transcribed Image Text:TB MC Qu. 8-121 (Static) Bramble Corporation is a small wholesaler of ... Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January. • Collections are expected to be 80% in the month of sale and 20% 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 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 $24,000. • Monthly depreciation is $15,000. • Ignore taxes. Assets Cash Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,000 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: $ 20,000 70,000 153,000 1,094,000 $ 1,337,000 $ 254,000 820,000 263,000 $ 1,337,000
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