Braston Corporation is a small wholesaler of gourmet food products. Data regarding the store's

operations follow:

? Sales are budgeted at $350,000 for November, $330,000 for December, and $340,000 for

January.

? Collections are expected to be 70% in the month of sale, 26% in the month following the sale,

and 4% uncollectible.

? The cost of goods sold is 70% of sales.

? The company purchases 50% of its merchandise in the month prior to the month of sale and

50% 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 $20,100.

? Monthly depreciation is $22,000.

? Ignore taxes.

1. Expected cash collections in December are:

A. $91,000

B. $330,000

C. $322,000

D. $231,000

2. The cost of December merchandise purchases would be:

A. $231,000

B. $119,000

C. $245,000

D. $234,500

3. December cash disbursements for merchandise purchases would be:

A. $119,000

B. $234,500

C. $231,000

D. $238,000

4. The excess (deficiency) of cash available over disbursements for December would be:

A. $20,200

B. $107,600

C. $43,700

D. $63,900