Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:Sales are budgeted at $230,000 for November, $210,000 for December, and $200,000 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 65% of sales.The company would like to maintain ending merchandise inventories equal to 55% 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 $22,900.Monthly depreciation is $13,900.Ignore taxes. The difference between cash receipts and cash disbursements for December would be:

Question

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:Sales are budgeted at $230,000 for November, $210,000 for December, and $200,000 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 65% of sales.The company would like to maintain ending merchandise inventories equal to 55% 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 $22,900.Monthly depreciation is $13,900.Ignore taxes.  The difference between cash receipts and cash disbursements for December would be:

Quizplus · Accepted Answer

The Answer of Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:Sales are budgeted at $230,000 for November, $210,000 for December, and $200,000 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 65% of sales.The company would like to maintain ending merchandise inventories equal to 55% 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 $22,900.Monthly depreciation is $13,900.Ignore taxes.  The difference between cash receipts and cash disbursements for December would be:

Bramble Corporation Is a Small Wholesaler of Gourmet Food Products