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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 $250,000 for November, $230,000
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 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 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 $23,100. Monthly depreciation is $14,100. Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Balance Sheet October 31 $ 22,100 72,100 121,875 1,096,100 Property, plant and equipment, net of $574,100 accumulated depreciation $1,312,175 Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 256,100 822,100 233,975 $1,312,175
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