6 Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $270,000 for November, $280,000 for December, and $280,000 for January Collections are expected to be 85% in the month of sale, 12% in the month following the sale, and 3% uncollectible . The cost of goods sold is 80% of sales . The company would like to maintain ending merchandise inventories 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 $21,200 Monthly depreciation is $18,400 Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts Merchandise inventory Property, plant and equipment, net of $622,000 accumulated depreciation Total assets $46,000 94,000 151,200 1,260,000 $1,551,200 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $356,450 820,000 374,750 $1,551,200 Expected cash collections in December are: O $270,400 O $238,000 O $280,00o O $32,400