Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,100 units are planned to be sold in March. The variable selling and administrative expense is $4.60 per unit. The budgeted fixed selling and administrative expense is $35,710 per month, which includes depreciation of $3,600 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $41,770 $9,660 $32,110 $45,370

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

• Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January.
• Collections are expected to be 80% in the month of sale and 20% in the month following the sale.
• The cost of goods sold is 75% 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 $24,000.
• Monthly depreciation is $15,000.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	20,000
Accounts receivable		70,000
Merchandise inventory		153,000
Property, plant and equipment, net of $572,000 accumulated depreciation		1,094,000
Total assets	$	1,337,000
Liabilities and Stockholders' Equity
Accounts payable	$	254,000
Common stock		820,000
Retained earnings		263,000
Total liabilities and stockholders' equity	$	1,337,000

Expected cash collections in December are:

Multiple Choice

• $320,000

• $68,000

• $256,000

• $324,000

Carver Lumber sells lumber and general building supplies to building contractors in a medium-sized town in Montana. Data regarding the store's operations follow:

• Sales are budgeted at $350,000 for November, $320,000 for December, and $300,000 for January.
• Collections are expected to be 90% in the month of sale and 10% in the month following the sale.
• The cost of goods sold is 75% of sales.
• The company desires to have an ending merchandise inventory equal to 60% of the following 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 $24,700.
• Monthly depreciation is $16,000.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	19,000
Accounts receivable		77,000
Inventory		157,500
Property, plant and equipment, net of $502,000 accumulated depreciation		1,002,000
Total assets	$	1,255,500
Liabilities and Stockholders Equity
Accounts payable	$	272,000
Common stock		780,000
Retained earnings		203,500
Total liabilities and stockholders equity	$	1,255,500

The net income for December would be:

Multiple Choice

• $32,900

• $55,300

• $42,300

• $39,300