Reference no: EM132469947

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

1. Sales are budgeted at $250,000 for November, $230,000 for December, and $220,000 for January.
2. Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
3. The cost of goods sold is 75% of sales.
4. 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.
5. Other monthly expenses to be paid in cash are $23,100.
6. Monthly depreciation is $14,100.
7. Ignore taxes.

Balance Sheet

October 31

Assets Cash                                                 $20,000

Accounts receivable                                       70,000

Merchandise inventory                                   153,000

Property, plant and equipment, net of            $572,000

accumulated depreciation                           1,094,000

Total assets                                             $1,337,000

Liabilities and Stockholders' Equity Accounts payable $254,000

Question 1: Expected cash collections in December are: