Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the stores operations...
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Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the stores operations follow Sales are budgeted at $410,000 for November, $390.000 for December, and $380,000 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 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 524.700. Monthly depreciation is $15.700 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,700 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 20,700 70,700 229,600 1,094,700 $ 1,415,700 $ 254,700 828,700 340, 300 $ 1,415,700 Expected cash collections in December are
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