The cash balance at the end of december would be a

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99. The cash balance at the end of December would be: A) $180,500 B) $153,500 C) $82,800 D) $27,000 Level: Hard    LO:  10    Ans:  A Brewer, Introduction to Managerial Accounting, 3/e 136
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100. The accounts receivable balance, net of uncollectible accounts, at the end of December would be: 101. Accounts payable at the end of December would be: 102. Retained earnings at the end of December would be: Use the following information to answer 103-106 Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store’s  operations follow: Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January. Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3%  uncollectible. The cost of goods sold is 75% of sales. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the  month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,800. Monthly depreciation is $19,000. Ignore taxes. Brewer, Introduction to Managerial Accounting, 3/e 137
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103. Expected cash collections in December are: A) $340,000 B) $328,100 C) $272,000 D) $56,100 Level: Hard    LO:  2    Ans:  B 104. The cost of December merchandise purchases would be: 105. December cash disbursements for merchandise purchases would be: Brewer, Introduction to Managerial Accounting, 3/e 138
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106. The excess (deficiency) of cash available over disbursements for December would be: Use the following information to answer 107-111 Carter Lumber sells lumber and general building supplies to building contractors in a medium-sized town  in Montana. Data regarding the store’s operations follow: Sales are budgeted at $380,000 for November, $390,000 for December, and $400,000 for January. Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3%  uncollectible. The cost of goods sold is 65% of sales. The company purchases 80% of its merchandise in the month prior to the month of sale and 20% in the  month of sale. Payment for merchandise is made in the month following the purchase.
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  • Fall '12
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