USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION Brarin Corporation is

Question

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the Brarin follow: Sales are budgeted at $340,000 for November, $360,000 for December, and S350,000 for January. Collect uncolectible *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 $23,100. ions are expected to be 55% in the month of sale, 44% in the month following the sale, and 1% Monthly depreciation is $21,000. Ignore taxes. Statement of Financial Positiorn October 31 Assets Cashnarmmnanma Accounts receivable (net of allowance for uncollectible accounts) Merchandise inventoryaa 22,000 77,000 190,400 P'roperty, plant and equipment (net of $452,000 accumulated depreciatio)9410 51,223,400 Total assets Liabilities and Stockholders' Equity lecounts payablen r281,000 Common st Retained earnings. Total liabilities and stockholders' equity. 620,000 322400 223,400 45. The Account Payable balance as of December 31 would be: A. $272,000 B. $288,000 C $196,000 D) $282,400

Explanation / Answer

Calculate december purchase :

so answer is d) $282,400

Sales 360000 Cost of goods sold 288000 Add: Desired ending inventory (350000*80%*70%) 196000 Total 484000 Less: Beginning inventory (288000*70%) (201600) Purchase december 282400

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