Question

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $370,000 for November, $350,000 for December, and $340,000 for January. . Collections are expected to be 55% in the month of sale and 45% in the month following the sale . The cost of goods sold is 70% of sales · The company would like 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 Other monthly expenses to be paid in cash are $24,300 Monthly depreciation is $15,300 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $572,300 accumulated depreciation Total assets $ 20,300 70,300 155,400 1,094,300 $1,340,300 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 254,300 820,300 265,700 $1,340,300 December cash disbursements for merchandise purchases would be

Answer 1

Purchase Budget
			Nov	Dec	Jan
Sales in $			370000	350000	340000
Cost of Goods sold @ 70% of sales			259000	245000	238000
Add: Ending Inventory of FG			147000	142800
Total Rrequirement			406000	387800
Less: Desired Beginning Inventory			155400	147000
Budgeted Purchases			250600	240800
Cash Disbursement of Dec:
Nov Purchases (100% of 250600)				250600
Total cash disbursements for dec				250600
Answer is $ 250600