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Bramble Corporation is a smalt wholesaler of gourmet food products. Data regarding the store's operations follow 1 Sales are budgeted at $260,000 for November, $240,000

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Bramble Corporation is a smalt wholesaler of gourmet food products. Data regarding the store's operations follow 1 Sales are budgeted at $260,000 for November, $240,000 for December, and $230,000 for January Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 80% of sales The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for roncs merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $23,200, Monthly depreciation is $14.200. Ignore taxes Balance Sheet October 31 Assets $ Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,000 accumulated depreciation 22,000 72,000 145,600 1,096,000 Total assets $1,335,600 $ Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 256,000 822,000 257,600 Total liabilities and stockholders' equity $1,335,600 Bramble Corporation is a smalt wholesaler of gourmet food products. Data regarding the store's operations follow 1 Sales are budgeted at $260,000 for November, $240,000 for December, and $230,000 for January Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 80% of sales The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for roncs merchandise is made in the month following the purchase Other monthly expenses to be paid in cash are $23,200, Monthly depreciation is $14.200. Ignore taxes Balance Sheet October 31 Assets $ Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,000 accumulated depreciation 22,000 72,000 145,600 1,096,000 Total assets $1,335,600 $ Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings 256,000 822,000 257,600 Total liabilities and stockholders' equity $1,335,600

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