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

Quizplus · Accepted Answer

Cash receipts in December:
 11eaa0c8_94ee_7458_9cb2_f9c0470cf810_TB2487_00 Cash disbursements for purchases of merchandise inventory in December:
 11eaa0c8_94ee_7459_9cb2_31d289625308_TB2487_00 In December, the company will pay for November's purchases of $252, 750.
 11eaa0c8_94ee_9b6a_9cb2_370a386066e5_TB2487_00

Bracken Corporation Is a Small Wholesaler of Gourmet Food Products