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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.
December cash disbursements for merchandise purchases would be:
Group of answer choices
$126,750
$207,750
$202,500
$197,625
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