Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:Sales are budgeted at $330,000 for November, $310,000 for December, and $300,000 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 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 $23,900.Monthly depreciation is $14,900.Ignore taxes.
December cash disbursements for merchandise purchases would be:
A) $146,250
B) $237,750
C) $232,500
D) $227,625
Correct Answer:
Verified
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