Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $450,000 for November, $430,000 for December, and $420,000 for January. • Collections are expected to be 40% in the month of sale and 60% 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 $25,100. • Monthly depreciation is $16.100. • Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,108 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: Multiple Choice O O $134100 $66,863 Balance Sheet October 31 $89.150 $44.225 $ 21,100 71,100 219,375 1,095,100 $ 1,406,675 $ 255,100 821,100 330,475 $ 1,406,675

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $450,000 for November, $430,000 for December, and $420,000 for January. • Collections are expected to be 40% in the month of sale and 60% 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 $25,100. • Monthly depreciation is $16.100. • Ignore taxes. Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,108 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: Multiple Choice O O $134100 $66,863 Balance Sheet October 31 $89.150 $44.225 $ 21,100 71,100 219,375 1,095,100 $ 1,406,675 $ 255,100 821,100 330,475 $ 1,406,675

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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