The company would like to maintain ending merchandise

Reference no: EM13566064

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

•Sales are budgeted at $430,000 for November, $450,000 for December, and $440,000 for January.

•Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
• The cost of goods sold is 85% of sales.

•The company would like to maintain ending merchandise inventories equal to 75% 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 $24,000.

• Monthly depreciation is $21,900.

• Ignore taxes.

Expected cash collections in December are:
$270,000
$437,700
$450,000
$167,700

Reference no: EM13566064

Questions Cloud

Veltri corporation is working on its direct labor budget : veltri corporation is working on its direct labor budget for the next two months. each unit of output requires 0.78

Use the following information to answer the following : use the following information to answer the following questions.a max inc. deposited 2000 in a bank account that pays

Write down the yield on 20-year aaa-rated bonds divide the : go to www.bondsonline.com click on todays market then on compostie bond yields and then on click for date. under

Zenex inc sells 250000 of its accounts receivable to : zenex inc. sells 250000 of its accounts receivable to factors at a 3 percent discount. the firms average collection

The company would like to maintain ending merchandise : brarin corporation is a small wholesaler of gourmet food products. data regarding the stores operations

Middletown usa currently has a population of 15 million : middletown usa currently has a population of 1.5 million people. it has been one of the fastest growing cities in the

Current public procurement legislation prohibits : current public procurement legislation prohibits post-tender price negotiation for the uk national health system nhs.

What is an original issue discount bond how are such bonds : what is an original issue discount bond? how are such bonds priced and how are their before-tax and after-tax rates of

What impact would the following actions have on the : what impact would the following actions have on the operating and cash conversion cycles? would the cycles increase

User Account

All Pages