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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 $340,000 for November, $320,000 for December, and $310,000 for January. • Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible. • The cost of goods sold is 75% of sales. • The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise 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......... Accounts receivable (net of allowance for uncollectible accounts). Statement of Financial Position October 31 Inventory.. Property, plant and equipment (net of $572,000 accumulated depreciation)......... Total assets. Select one: O a. $40,400 O b. $68,600 O c. $28,200 O d. $12,200 $ 20,000 70,000 153,000 1.094,000 $1.337.000 Liabilities and Stockholders' Equity: Accounts payable..... Common stock. Retained earnings. Total liabilities and stockholders' equity. The excess (deficiency) of cash available over disbursements for December would be: S 254,000 820,000 263,000 $1,337,000

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, 16% in the month following the sale, and 4% uncollectible. • The cost of goods sold is 75% of sales. • The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise 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......... Accounts receivable (net of allowance for uncollectible accounts). Statement of Financial Position October 31 Inventory.. Property, plant and equipment (net of $572,000 accumulated depreciation)......... Total assets. Select one: O a. $40,400 O b. $68,600 O c. $28,200 O d. $12,200 $ 20,000 70,000 153,000 1.094,000 $1.337.000 Liabilities and Stockholders' Equity: Accounts payable..... Common stock. Retained earnings. Total liabilities and stockholders' equity. The excess (deficiency) of cash available over disbursements for December would be: S 254,000 820,000 263,000 $1,337,000

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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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 $340,000 for November, $320,000 for December, and $310,000 for January. • Collections are expected to be 80% in the month of sale, 16% in the month following the sale, and 4% uncollectible. • The cost of goods sold is 75% of sales. • The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. 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......... Accounts receivable (net of allowance for uncollectible accounts). Statement of Financial Position October 31 Inventory.. Property, plant and equipment (net of $572,000 accumulated depreciation)......... Total assets. Select one: O a. $40,400 O b. $68,600 O c. $28,200 O d. $12,200 $ 20,000 70,000 153,000 1.094,000 $1.337.000 Liabilities and Stockholders' Equity: Accounts payable..... Common stock. Retained earnings. Total liabilities and stockholders' equity. The excess (deficiency) of cash available over disbursements for December would be: S 254,000 820,000 263,000 $1,337,000
Transcribed Image Text: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, 16% in the month following the sale, and 4% uncollectible. • The cost of goods sold is 75% of sales. • The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. 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......... Accounts receivable (net of allowance for uncollectible accounts). Statement of Financial Position October 31 Inventory.. Property, plant and equipment (net of $572,000 accumulated depreciation)......... Total assets. Select one: O a. $40,400 O b. $68,600 O c. $28,200 O d. $12,200 $ 20,000 70,000 153,000 1.094,000 $1.337.000 Liabilities and Stockholders' Equity: Accounts payable..... Common stock. Retained earnings. Total liabilities and stockholders' equity. The excess (deficiency) of cash available over disbursements for December would be: S 254,000 820,000 263,000 $1,337,000
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