Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the...
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Accounting
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. BalanceSheetOctober31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of \$572,000 accumulated depreciation Total assets Liabilities and stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $20,00070,000153,0001,094,000$1,337,000$254,000820,000263,000$1,337,000 The difference between cash receipts and cash disbursements for December would be: Multiple Choice $54,000 $68,600 $28,200 $12,200
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