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

Question

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

Sales are budgeted at $360,000 for November, $370,000 for December, and $370,000 for January.

Collections are expected to be 85% in the month of sale, 14% in the month following the sale, and 1% uncollectible.

The company would like to maintain ending merchandise inventories equal to 50% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.

Expected cash collections in December are:

$364,900

$370,000

$314,500

$50,400

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

Explanation / Answer

This a very simple question asked as we can find the logic from the 1st two lines of the question .

As given the sales of December and then said that 85% of sales are collected in that month and the question also asks that what is the cash collection of December so the answer would be

Sale of December =370,000

85% will be collected in this month of sale .

So the collection will be, 370,000*85%=314,500

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