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Home Q & A Board Other Fields Homework Help Business Accounting
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mhbtelc mhbtelc
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A year ago

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

  • Sales are budgeted at $210,000 for November, $190,000 for December, and $180,000 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 55% of sales.
  • The company would like to maintain ending merchandise inventories equal to 45% 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 $22,700.
  • Monthly depreciation is $13,700.
  • Ignore taxes.

Balance Sheet
October 31
Assets
Cash$ 22,500
Accounts receivable72,500
Merchandise inventory51,975
Property, plant and equipment, net of $574,500 accumulated depreciation1,096,500
Total assets$ 1,243,475
Liabilities and Stockholders' Equity
Accounts payable$ 256,500
Common stock822,500
Retained earnings164,475
Total liabilities and stockholders' equity$ 1,243,475

Expected cash collections in December are:



▸ $105,000

▸ $95,000

▸ $190,000

▸ $200,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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janel989janel989
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A year ago
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