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:
 11eaa3fe_3278_cf06_908b_9d53433c32ee_TB2461_00 Cash disbursements for purchases of merchandise inventory in December:
 11eaa3fe_3278_f617_908b_89f939dffd44_TB2461_00 In December,the company will pay for November's purchases of $252,750.
 11eaa3fe_327a_7cb8_908b_edb7f87ef7ac_TB2461_00

Bracken Corporation Is a Small Wholesaler of Gourmet Food Products