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. Expected cash collections in December are:

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.  Expected cash collections in December are:

Quizplus · Accepted Answer

Cash collections for December:
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Bracken Corporation Is a Small Wholesaler of Gourmet Food Products