MC Qu. 84 Brarin Corporation is a small wholesaler of gourmet ...

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

	Sales are budgeted at $460,000 for November, $480,000 for December, and $480,000 for January.
	Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible.
	The cost of goods sold is 80% of sales.
	The company would like to maintain ending merchandise inventories equal to 60% 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 $23,000.
	Monthly depreciation is $20,200.
	Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$40,000
Accounts receivable, net of allowance for uncollectible accounts	88,000
Merchandise inventory	220,800
Property, plant and equipment, net of $616,000 accumulated depreciation	1,230,000
Total assets	$1,578,800
Liabilities and Stockholders' Equity
Accounts payable	$251,550
Common stock	960,000
Retained earnings	367,250
Total liabilities and stockholders' equity	$1,578,800

The difference between cash receipts and cash disbursements in December would be:

	$132,800
	$71,800
	$17,000
	$38,300