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

Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 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 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 $23,100.

Monthly depreciation is $14,100.

Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 22,100
Accounts receivable	72,100
Merchandise inventory	121,875
Property, plant and equipment, net of $574,100 accumulated depreciation	1,096,100
Total assets	$ 1,312,175
Liabilities and Stockholders' Equity
Accounts payable	$ 256,100
Common stock	822,100
Retained earnings	233,975
Total liabilities and stockholders' equity	$ 1,312,175

The cost of December merchandise purchases would be:

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

Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 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 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 $23,100.

Monthly depreciation is $14,100.

Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 22,100
Accounts receivable	72,100
Merchandise inventory	121,875
Property, plant and equipment, net of $574,100 accumulated depreciation	1,096,100
Total assets	$ 1,312,175
Liabilities and Stockholders' Equity
Accounts payable	$ 256,100
Common stock	822,100
Retained earnings	233,975
Total liabilities and stockholders' equity	$ 1,312,175

The cost of December merchandise purchases would be:

$172,500

$187,500

$167,625

$107,250

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