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

• Sales are budgeted at $260,000 for November, $270,000 for December, and $270,000 for January.

• Collections are expected to be 70% in the month of sale, 29% in the month following the sale, and 1% uncollectible.

• 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 $21,100.

• Monthly depreciation is $18,300.

• Ignore taxes.

Balance Sheet

October 31

Assets

Cash ..................................................................................... $47,000

Accounts receivable, net of allowance for uncollectible accounts .............. 95,000

Merchandise inventory ................................................................ 126,750

Property, plant and equipment, net of $623,000 accumulated depreciation.... 1,265,000

Total assets ..............................................................................$1,533,750

Liabilities and Stockholders' Equity

Accounts payable ....................................................................... $327,750

Common stock .......................................................................... 830,000

Retained earnings ...................................................................... 376,000

Total liabilities and stockholders' equity .............................................$1,533,750

December cash disbursements for merchandise purchases would be:

$131,625

$202,500

$199,875

$190,125