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.

Reference: 9-3

December cash disbursements for merchandise purchases would be:

		$139,500
		$246,000
		$240,000
		$235,500

$ 20,000 Statement of Financial Position October 31 Assets: Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of $572,000 accumulated depreciation) Total assets. 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. $ 254,000 820,000 263,000 $1,337,000