MC Qu. 83 Bracken Corporation is a small wholesaler... Bracken Corporation is a

Question

MC Qu. 83 Bracken Corporation is a small wholesaler... Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow Sales are budgeted at $460,000 for November, $480,000 for December, and $480,000 for January ·Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and ·The cost of goods sold is 80% of sales . 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 Other monthly expenses to be paid in cash are $23,000 Monthly depreciation is $20,200 Ignore taxes otal assets T otal iabat s would be

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November December Jan Sales $460,000 $480,000 480000 November December Jan Budgeted Cost of Good sold (80% *sales) $368,000 $384,000 $384,000 Add: desired Ending Inventory (60%of next month COGS ) $230,400 $230,400 total needs $598,400 $614,400 Less: beginning Inventory 220800 $230,400 Required Purchases $377,600 $384,000 December cash disbursement for mercandise purchase is $377600 ans As payment is made in the month following purchases

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