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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. 3 8 00:52:17 Sales are budgeted at $460,000 for
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. 3 8 00:52:17 Sales are budgeted at $460,000 for November. $440,000 for December, and $430,000 for January Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 80% 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 $25,200. Monthly depreciation is $16.200 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,200 accumulated depreciation Total assets $ 21,200 71,200 220,800 1,095,200 $1,488,480 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 255,200 821,200 332,000 $1,408,400 The cost of December merchandise purchases would be: Multiple Choice $347.200 $368,000 $352,000 $206.400
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