34. Bracken Corporation is a small wholesaler of gourmet food products. Data reg

Question

34. Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Sales are budgeted at $420,000 for November, $440,000 for December, and $440,000 for January.

Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible.

The company would like to 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.

$1,506,400  

$1,506,400  

  
The difference between cash receipts and cash disbursements in December would be:

$43,000

$154,200

$15,000

$98,400

37.

0.46

1.27

1.22

0.40

34. Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Explanation / Answer

37)

current ratio=current assets/current liabilities

=428/336=1.27

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