24:13 Help Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: . Sales are budgeted at $308,000 for November, $328,000 for December, and $228,000 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 80% of sales. Save & Exit Submit The company desires to have an ending merchandise Inventory at the end of each month equal to 70% 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 $22,900. Monthly depreciation is $30,000. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The cost of December merchandise purchases would be: $ 35,500 86,000 172,480 923,000 $ 1,216,980) $ 257,000 758,000 201,980 $ 1,216,980