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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 $290,000 for November, $270,000 for

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

  • Sales are budgeted at $290,000 for November, $270,000 for December, and $260,000 for January.
  • Collections are expected to be 40% in the month of sale and 60% 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 $23,500.
  • Monthly depreciation is $14,500.
  • Ignore taxes.

Balance SheetOctober 31AssetsCash$ 21,700Accounts receivable71,700Merchandise inventory141,375Property, plant and equipment, net of $573,700 accumulated depreciation1,095,700Total assets$ 1,330,475Liabilities and Stockholders' EquityAccounts payable$ 255,700Common stock821,700Retained earnings253,075Total liabilities and stockholders' equity$ 1,330,475

December cash disbursements for merchandise purchases would be:

Group of answer choices
$126,750
$207,750
$202,500
$197,625

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