Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $230,000 for November, $250,000 for December, and $240,000 for January. ⚫ Collections are expected to be 40% in the month of sale, 57% in the month following the sale, and 3% uncollectible. . 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 $22,000. • Monthly depreciation is $19,900. . Ignore taxes. Expected cash collections in December are: Multiple Choice $231,100 ○ $250,000 $100,000 $131,100

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the
store's operations follow:
• Sales are budgeted at $230,000 for November, $250,000 for December, and
$240,000 for January.
⚫ Collections are expected to be 40% in the month of sale, 57% in the month following
the sale, and 3% uncollectible.
. 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 $22,000.
• Monthly depreciation is $19,900.
. Ignore taxes.
Expected cash collections in December are:
Multiple Choice
$231,100
○ $250,000
$100,000
$131,100
Transcribed Image Text:Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $230,000 for November, $250,000 for December, and $240,000 for January. ⚫ Collections are expected to be 40% in the month of sale, 57% in the month following the sale, and 3% uncollectible. . 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 $22,000. • Monthly depreciation is $19,900. . Ignore taxes. Expected cash collections in December are: Multiple Choice $231,100 ○ $250,000 $100,000 $131,100
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