Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Sales are budgeted at $270,000 for November, $250,000 for December, and $240,000 for January.
Collections are expected to be 50% in the month of sale and 50% in the month following the sale.
The cost of goods sold is 75% of sales.
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.
Other monthly expenses to be paid in cash are $23,300.
Monthly depreciation is $14,300.
Ignore taxes.