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Questions #8, 9 and 10 Refer to the following data (Hint: Much more information than is needed] Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follows: Sales are budgeted at $330,000 for November; $340,000 for December; and $360,000 for January * Collections are expected to be 85% in the month of sale; 12% in the month following sale; and 3% uncollectible. The Cost of Goods Sold is 60% of sales. . The company would like to maintain ending inventory equal to 70% of the next month's Cost of Goods Sold. Payment for merchandise is made in the month following purchase. Other monthly expenses to be paid in cash are $21,800 Monthly Depreciation is $19,000. Ignore Taxes Bracken Corporation Balance Sheet As of October 31 Assets Cash $ 28,000 Accounts Receivable, net of allowance for uncollectible accounts 76,000 Merchandise Inventory 173,250 Property, plant and equipment, net of $604,000 accumulated depreciation 1,170,000 Total assets $ 1,447,250 ESE Liabilities and Stockholders' Equity Accounts Payable Common Stock Retained Earnings $ 255,000 840,000 352,250 $ 1,447,250 8. Expected cash collections in December are: a. $289,000 c. $328,600 b. $308,100 d. 338,500 e. None of the above. The answer is 9. The cost of December merchandise purchases would be: a. $196,000 c. $224,600 b. $212,400 d. $230,200 e. None of the above. The answer is 10. December cash disbursements for merchandise purchases would be: a $202,200 c. $209,200 b. $206,200 d. $212,200 e. None of the above. The answer is

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