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

• Sales are budgeted at $300,000 for November, $280,000 for December, and $270,000 for January.
• Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company would like to maintain ending merchandise inventories equal to 60% 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 $23,600.
• Monthly depreciation is $14,600.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,600
Accounts receivable		71,600
Merchandise inventory		126,000
Property, plant and equipment, net of $573,600 accumulated depreciation		1,095,600
Total assets	$	1,314,800
Liabilities and Stockholders' Equity
Accounts payable	$	255,600
Common stock		821,600
Retained earnings		237,600
Total liabilities and stockholders' equity	$	1,314,800

The cost of December merchandise purchases would be:

Multiple Choice

• $210,000

• $113,400

• $191,800

• $196,000