Bracken Corporation is a small wholesaler of gourmet food products.Data regarding the store's operations follow: o Sales are budgeted at $330, 000 for November, $340, 000 for December, and $340, 000 for January.
O Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.
O The cost of goods sold is 75% of sales.
O The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold.Payment for merchandise is made in the month following the purchase.
O Other monthly expenses to be paid in cash are $21, 800.
O Monthly depreciation is $19, 000.
O Ignore taxes. The cost of December merchandise purchases would be:

Question

Bracken Corporation is a small wholesaler of gourmet food products.Data regarding the store's operations follow: o Sales are budgeted at $330, 000 for November, $340, 000 for December, and $340, 000 for January.
O Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.
O The cost of goods sold is 75% of sales.
O The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold.Payment for merchandise is made in the month following the purchase.
O Other monthly expenses to be paid in cash are $21, 800.
O Monthly depreciation is $19, 000.
O Ignore taxes.  The cost of December merchandise purchases would be:

Quizplus · Accepted Answer

December merchandise purchases:
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Bracken Corporation Is a Small Wholesaler of Gourmet Food Products