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Provide formulas and procedure in excel QUESTION 5 Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales
Provide formulas and procedure in excel
QUESTION 5
- 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 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 |
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Assets |
|
| |
Cash | $ | 20,600 | |
Accounts receivable |
| 70,600 | |
Merchandise inventory |
| 195,000 | |
Property, plant and equipment, net of $572,600 accumulated depreciation |
| 1,094,600 | |
Total assets | $ | 1,380,800 | |
|
|
| |
Liabilities and Stockholders' Equity |
|
| |
Accounts payable | $ | 254,600 | |
Common stock |
| 820,600 | |
Retained earnings |
| 305,600 | |
Total liabilities and stockholders' equity | $ | 1,380,800 | |
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- Required: Prepare the December cash disbursements for merchandise purchases.
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