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

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Accounting

Brarin Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
-Sales are budgeted at $230,000 for November, $250,000 for December, and $240,000 for January.
-Collections are expected to be 40% in the month of sale, 57% in the month following the sale, and 3% uncollectible.
-The cost of goods sold is 65% of sales.
-The company would like to maintain ending merchandise inventories equal to 55% 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 $22,000.
-Monthly depreciation is $19,900.
-Ignore taxes.
Expected cash collections in December are:
Multiple Choice
$231,100
$250,000
$100,000
$131,100
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