Final answer:
To determine the difference between cash receipts and disbursements for December at Bramble Corporation, cash receipts totaling $249,000 are calculated from sales in December and collections from November. Cash disbursements include $134,400 for inventory payments and $23,200 for other expenses, totaling $157,600. The difference is $91,400.
Step-by-step explanation:
Cash Receipts and Disbursements for December
To calculate the cash receipts for December, we consider both the collections from December's sales and the collections from the November sales.
December Sales: $240,000
Collect 55% in December: $240,000 × 55% = $132,000
November Sales: $260,000
Collect 45% in December (from November sales): $260,000 × 45% = $117,000
Total cash receipts for December: $132,000 (December) + $117,000 (November) = $249,000
Next, we calculate total cash disbursements for December, which includes the cost of goods sold, payment for November's inventory, and other expenses.
December's Cost of Goods Sold (COGS): $240,000 × 80% = $192,000
November's inventory payment (70% of December's COGS): $192,000 × 70% = $134,400
Other expenses (paid in cash): $23,200
Monthly depreciation (not a cash outflow): $14,200
Total cash disbursements for December: $134,400 (inventory) + $23,200 (Other expenses) = $157,600
Finally, we compute the difference between cash receipts and cash disbursements:
Total cash receipts: $249,000
Total cash disbursements: $157,600
Difference (Receipts - Disbursements): $249,000 - $157,600 = $91,400