Answered step by step
Verified Expert Solution
Question
1 Approved Answer
TB MC Qu. 8-121 Bramble Corporation is a small wholesaler ... Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's
TB MC Qu. 8-121 Bramble Corporation is a small wholesaler ...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
- Sales are budgeted at $330,000 for November, $310,000 for December, and $300,000 for January.
- Collections are expected to be 50% in the month of sale and 50% 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 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 $23,900.
- Monthly depreciation is $14,900.
- Ignore taxes.
Balance Sheet October 31 | ||||||
Assets | ||||||
Cash | $ | 21,300 | ||||
Accounts receivable | 71,300 | |||||
Merchandise inventory | 160,875 | |||||
Property, plant and equipment, net of $573,300 accumulated depreciation | 1,095,300 | |||||
Total assets | $ | 1,348,775 | ||||
Liabilities and Stockholders' Equity | ||||||
Accounts payable | $ | 255,300 | ||||
Common stock | 821,300 | |||||
Retained earnings | 272,175 | |||||
Total liabilities and stockholders' equity | $ | 1,348,775 | ||||
The difference between cash receipts and cash disbursements for December would be:
Multiple Choice
-
$58,350
-
$43,763
-
$102,100
-
$27,525
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started