Q1 Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

• 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 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	$	22,000
Accounts receivable		72,000
Merchandise inventory		145,600
Property, plant and equipment, net of $574,000 accumulated depreciation		1,096,000
Total assets	$	1,335,600
Liabilities and Stockholders' Equity
Accounts payable	$	256,000
Common stock		822,000
Retained earnings		257,600
Total liabilities and stockholders' equity	$	1,335,600

Expected cash collections in December are:

Garrison 16e Rechecks 2017-10-03, 2018-07-24

Multiple Choice

• $117,000

• $132,000

• $240,000

• $249,000

Q2 Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

• Sales are budgeted at $310,000 for November, $290,000 for December, and $280,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
• The cost of goods sold is 65% of sales.
• The company would like to maintain ending merchandise inventories equal to 55% 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 $23,700.
• Monthly depreciation is $14,700.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,500
Accounts receivable		71,500
Merchandise inventory		110,825
Property, plant and equipment, net of $573,500 accumulated depreciation		1,095,500
Total assets	$	1,299,325
Liabilities and Stockholders' Equity
Accounts payable	$	255,500
Common stock		821,500
Retained earnings		222,325
Total liabilities and stockholders' equity	$	1,299,325

December cash disbursements for merchandise purchases would be:

Garrison 16e Rechecks 2017-10-03, 2018-07-24

Multiple Choice

• $100,100

• $194,350

• $188,500

• $184,925

Q3 Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 4,200 tenant-days, but its actual level of activity was 4,180 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February:

Data used in budgeting:

	Fixed element per month			Variable element per tenant-day
Revenue		-		$	30.70
Wages and salaries	$	3,200		$	6.70
Food and supplies		600			11.50
Facility expenses		8,200			3.70
Administrative expenses		8,000			0.10
Total expenses	$	20,000		$	22.00

Actual results for February:

Revenue	$	107,980
Wages and salaries	$	23,520
Food and supplies	$	36,792
Facility expenses	$	19,270
Administrative expenses	$	9,144

The activity variance for net operating income in February would be closest to:

Multiple Choice

• $2,714 F

• $174 U

• $174 F

• $2,714 U