Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $290,000 for December, and $280,000 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 65% of sales. The company would like to maintain ending merchandise inventories equal to 55% 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 $23,700. Monthly depreciation is $14,700. . • Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Expected cash collections in December are: Multiple Choice O O O $124,000 Balance Sheet October 31 $174,000 $290,000 Saved < Prev 10 of 10 $ 21,500 71,500 110,825 1,095,500 $ 1,299,325 $ 255,500 821,500 222,325 $ 1,299,325 Next ↓
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $290,000 for December, and $280,000 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 65% of sales. The company would like to maintain ending merchandise inventories equal to 55% 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 $23,700. Monthly depreciation is $14,700. . • Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,500 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Expected cash collections in December are: Multiple Choice O O O $124,000 Balance Sheet October 31 $174,000 $290,000 Saved < Prev 10 of 10 $ 21,500 71,500 110,825 1,095,500 $ 1,299,325 $ 255,500 821,500 222,325 $ 1,299,325 Next ↓
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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Transcribed Image Text:Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Sales are budgeted at $310,000 for November, $290,000 for December, and $280,000 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 65% of sales.
The company would like to maintain ending merchandise inventories equal to 55% 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 $23,700.
.
• Monthly depreciation is $14,700.
• Ignore taxes.
.
Assets
Cash
Accounts receivable
Merchandise inventory
Property, plant and equipment, net of $573,500 accumulated depreciation
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Common stock
Retained earnings
Total liabilities and stockholders' equity
Expected cash collections in December are:
Multiple Choice
O
$124,000
Balance Sheet
October 31
$174,000
$290,000
Saved
< Prev
10 of 10
$ 21,500
71,500
110,825
1,095,500
$ 1,299,325
$ 255,500
821,500
222,325
$ 1,299,325
Next >
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