12. MC Qu. 81 Bracken Corporation is a small wholesaler of gourmet...

Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

	Sales are budgeted at $240,000 for November, $250,000 for December, and $250,000 for January.
	Collections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% uncollectible.
	The cost of goods sold is 75% of sales.
	The company would like to maintain ending merchandise inventories equal to 65% 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 $20,900.
	Monthly depreciation is $18,100.
	Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$49,000
Accounts receivable, net of allowance for uncollectible accounts	97,000
Merchandise inventory	117,000
Property, plant and equipment, net of $625,000 accumulated depreciation	1,275,000
Total assets	$1,538,000
Liabilities and Stockholders' Equity
Accounts payable	$309,500
Common stock	850,000
Retained earnings	378,500
Total liabilities and stockholders' equity	$1,538,000

Expected cash collections in December are:

A) $43,200

B) $200,000

C) $243,200

D) $250,000