Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: |
• |
Sales are budgeted at $440,000 for November, $460,000 for December, and $460,000 for January. |
• |
Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible. |
• | The cost of goods sold is 80% of sales. |
• |
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. |
• | Other monthly expenses to be paid in cash are $22,800. |
• | Monthly depreciation is $20,000. |
• | Ignore taxes. |
Balance Sheet | |
October 31 | |
Assets | |
Cash | $38,000 |
Accounts receivable, net of allowance for uncollectible accounts | 86,000 |
Merchandise inventory | 246,400 |
Property, plant and equipment, net of $614,000 accumulated depreciation | 1,220,000 |
Total assets |
$1,590,400 |
Liabilities and Stockholders' Equity | |
Accounts payable | $285,650 |
Common stock | 940,000 |
Retained earnings | 364,750 |
Total liabilities and stockholders' equity |
$1,590,400 |
December cash disbursements for merchandise purchases would be:
December Cash disbursement = November purchase
November purchase = Cost of goods sold+Ending inventory-Beginning inventory
= (440000*80%)+(460000*80%*70%)-246400
November purchase = $363200
December Cash disbursement for merchandise purchases would be : $363200
Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for...
Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $250,000 for November, $260,000 for December, and $260,000 for January. • Collections are expected to be 75% in the month of sale, 24% in the month following the sale, and 1% uncollectible. • The cost of goods sold is 80% of sales. • The company would like to maintain ending merchandise inventories equal to 70% of the next...
Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $450,000 for November, $470,000 for December, and $470,000 for January. • Collections are expected to be 80% in the month of sale, 18% in the month following the sale, and 2% uncollectible. • The cost of goods sold is 75% of sales. • The company would like to maintain ending merchandise inventories equal to 65% of the next...
Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: • Sales are budgeted at $380,000 for November, $400,000 for December, and $400,000 for January • Collections are expected to be 80% In the month of sale, 19% In the month following the sale, and 1% uncollectible. • The cost of goods sold Is 75% of sales. • The company would like to maintain ending merchandise Inventories equal to 65% of the next month's...
Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: o Sales are budgeted at $462,000 for November, $348,000 for December, and $380,000 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 85% of sales. o The company would like to maintain ending merchandise inventories equal to 70% of the next month's...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $350,000 for November, $330,000 for December, and $320,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 80% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $260,000 for November, $240,000 for December, and $230,000 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 80% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $450,000 for November, $430,000 for December, and $420,000 for January. Collections are expected to be 40% in the month of sale and 60% in the month following the sale. The cost of goods sold is 75% of sales. The company would like to maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for...
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $400,000 for November, $380,000 for December, and $370,000 for January. Collections are expected to be 45% in the month of sale and 55% in the month following the sale. The cost of goods sold is 75% of sales. The company would like maintain ending merchandise inventories equal to 65% of the next month's cost of goods sold. Payment for merchandise...