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

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Accounting

Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: o Sales are budgeted at $438,000 for November, $516,000 for December, and $362,000 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 70% of sales. o 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. o Other monthly expenses to be paid in cash are $31,500. o Monthly depreciation is $22,800. o Ignore taxes. Balance Sheet October 31 Assets Cash $32,800 Accounts receivable, net of allowance for uncollectible accounts 80,000 Merchandise inventory 214,620 Property, plant and equipment, net of $653,000 accumulated depreciation 1,306,000 Total assets $1,633,420 Liabilities and Stockholders' Equity Accounts payable $330,000 Common stock 840,000 Retained earnings 463,420 Total liabilities and stockholders' equity $1,633,420 December cash disbursements for merchandise purchases would be: rev: 10_25_2016_QC_CS-67321 $252,840 $331,200 $361,200 $344,820

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