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

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Accounting

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

  • Sales are budgeted at $380,000 for November, $360,000 for December, and $350,000 for January.
  • Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
  • The cost of goods sold is 75% of sales.
  • The company would like to maintain ending merchandise inventories equal to 65% 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 $24,400.
  • Monthly depreciation is $15,400.
  • Ignore taxes.

Balance Sheet October 31
Assets
Cash $ 20,400
Accounts receivable 70,400
Merchandise inventory 185,250
Property, plant and equipment, net of $572,400 accumulated depreciation 1,094,400
Total assets $ 1,370,450
Liabilities and Stockholders' Equity
Accounts payable $ 254,400
Common stock 820,400
Retained earnings 295,650
Total liabilities and stockholders' equity $ 1,370,450

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

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