Bramble Corporation Is a Small Wholesaler of Gourmet Food Products

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
o Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January.
o Collections are expected to be 80% in the month of sale and 20% in the month following the sale.
o The cost of goods sold is 75% of sales.
o The company would like to maintain ending merchandise inventories equal to 60% 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 $24,000.
o Monthly depreciation is $15,000.
o Ignore taxes.

-The difference between cash receipts and cash disbursements for December would be:

A) $54,000
B) $68,600
C) $28,200
D) $12,200