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

• Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January.
• Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.
• The cost of goods sold is 75% of sales.
• 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.
• Other monthly expenses to be paid in cash are $21,800.
• Monthly depreciation is $19,000.
• 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:

• Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January.
• Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.
• The cost of goods sold is 75% of sales.
• 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.
• Other monthly expenses to be paid in cash are $21,800.
• Monthly depreciation is $19,000.
• Ignore taxes.

-The cost of December merchandise purchases would be:

Quizplus · Accepted Answer

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

• Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January.
• Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.
• The cost of goods sold is 75% of sales.
• 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.
• Other monthly expenses to be paid in cash are $21,800.
• Monthly depreciation is $19,000.
• Ignore taxes.

-The cost of December merchandise purchases would be:

Bracken Corporation Is a Small Wholesaler of Gourmet Food Products