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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 $400,000 for November. $380,000
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. . Sales are budgeted at $400,000 for November. $380,000 for December, and $370,000 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 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 $24,600. Monthly depreciation is $15.600 Ignore taxes. Balance Sheet October 31 Assets cash Accounts receivable Merchandise inventory Property, plant and equipmenty net of $572,600 accumulated depreciation Total assets $ 20,60e 70, 600 195,000 1,094,600 $1,380,800 Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity $ 254,600 82e, 60e Be5,600 $1, 3ge, 80e The cost of December merchandise purchases would be
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