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 $14100 Ignore taxes Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,100 accumulated depreciation Total assets Liabilities and Stockholders' Equity. Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity December cash disbursements for merchandise purchases would be Mutiple Choice O O $107.250 $177750 Balance Sheet October 31 $172.500 $167625 $ 22,100 72,100 121,075 1,096,100 $ 1,312,175 $ 256,100 822,100 233,975 $1,312,175

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 $14100 Ignore taxes Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $574,100 accumulated depreciation Total assets Liabilities and Stockholders' Equity. Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity December cash disbursements for merchandise purchases would be Mutiple Choice O O $107.250 $177750 Balance Sheet October 31 $172.500 $167625 $ 22,100 72,100 121,075 1,096,100 $ 1,312,175 $ 256,100 822,100 233,975 $1,312,175

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 5PA: Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash...

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