To solve this problem, we need to determine the cash disbursements for Bramble Corporation for the month of November.<\/p>\n\n\n\n
Step 1: Calculate the Cost of Goods Sold (COGS)<\/h3>\n\n\n\n
The cost of goods sold is given as 75% of sales. We can calculate the COGS for November, December, and January.<\/p>\n\n\n\n
November COGS<\/strong> = 75% of $400,000 = $300,000 Ending merchandise inventories are desired to be 65% of the next month’s COGS. The formula is:<\/p>\n\n\n\n Ending Inventory (November)<\/strong> = 65% of December COGS = 0.65 * $285,000 = $185,250 The beginning merchandise inventory for each month is equal to the ending merchandise inventory of the previous month. So:<\/p>\n\n\n\n Beginning Inventory (November)<\/strong> = $0 (since this is the start of the year) To calculate purchases for each month, we use the formula:<\/p>\n\n\n\n Purchases = Ending Inventory – Beginning Inventory + COGS<\/strong><\/p>\n\n\n\n For November: For December: For January: Payments for merchandise are made in the month following the purchase. Therefore, for November, payments will be made in December for November’s purchases.<\/p>\n\n\n\n Payments for Merchandise in December<\/strong> = Purchases for November = $485,250 Other monthly expenses are $24,600, which are paid in cash each month.<\/p>\n\n\n\n The total cash disbursements for November will include payments for merchandise in December, monthly expenses, and depreciation. Since depreciation is a non-cash expense, it is not included in the cash disbursements.<\/p>\n\n\n\n Total Cash Disbursements for November<\/strong> = Payments for Merchandise in December + Other Monthly Expenses The total cash disbursements for Bramble Corporation in November are $509,850<\/strong>.<\/p>\n\n\n\n I’ll generate the image to represent this information visually.<\/p>\n\n\n\n Here is the financial diagram representing the calculations for Bramble Corporation’s operations. It shows how we calculate cost of goods sold, ending inventory, purchases, and total cash disbursements for the month of November. Let me know if you need further clarifications or adjustments!<\/p>\n\n\n\n Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store’s operations follow: Sales are budgeted at $400,000 for November, $380,000 for December, and $370,000 for January.Collections are expected to be 45% in the month of sale and 55% in the month following the sale.The cost of goods sold is 75% of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-193381","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/193381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=193381"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/193381\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=193381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=193381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=193381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
December COGS<\/strong> = 75% of $380,000 = $285,000
January COGS<\/strong> = 75% of $370,000 = $277,500<\/p>\n\n\n\nStep 2: Calculate the Ending Merchandise Inventories<\/h3>\n\n\n\n
Ending Inventory (December)<\/strong> = 65% of January COGS = 0.65 * $277,500 = $180,375
Ending Inventory (January)<\/strong> = 65% of February COGS (not provided, but we will assume the same 75% of sales for February as January, i.e., $277,500) = 0.65 * $277,500 = $180,375<\/p>\n\n\n\nStep 3: Calculate the Beginning Merchandise Inventory<\/h3>\n\n\n\n
Beginning Inventory (December)<\/strong> = Ending Inventory of November = $185,250
Beginning Inventory (January)<\/strong> = Ending Inventory of December = $180,375<\/p>\n\n\n\nStep 4: Purchases of Merchandise<\/h3>\n\n\n\n
Purchases (November)<\/strong> = $185,250 – $0 + $300,000 = $485,250<\/p>\n\n\n\n
Purchases (December)<\/strong> = $180,375 – $185,250 + $285,000 = $280,125<\/p>\n\n\n\n
Purchases (January)<\/strong> = $180,375 – $180,375 + $277,500 = $277,500<\/p>\n\n\n\nStep 5: Payment for Merchandise<\/h3>\n\n\n\n
Payments for Merchandise in January<\/strong> = Purchases for December = $280,125<\/p>\n\n\n\nStep 6: Other Monthly Expenses<\/h3>\n\n\n\n
Step 7: Total Cash Disbursements for November<\/h3>\n\n\n\n
= $485,250 + $24,600 = $509,850<\/strong><\/p>\n\n\n\nConclusion:<\/h3>\n\n\n\n
![\"\"](\"https:\/\/learnexams.com\/blog\/wp-content\/uploads\/2025\/02\/image-1017.png\")
<\/figure>\n","protected":false},"excerpt":{"rendered":"