arm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $299,000 for November $319,000 for December, and $219,000 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 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 Other monthly expenses to be paid in cash are 522.000 Monthly depreciation is $25,500. Ignore taxes Balance Sheet October 31 sets accounts receivable Merchandise inventory Property, plant and equipment, net of 5624,000 accumulated depreciation Total assets $ 32,500 81.500 167,440 1,013, 51,294,440 Liabilities and Stockholders' Equity Accounts payable Coron stock Retained earnings Total T ilities and stockholders' equity $ 24,00 749,000 297.44 $1,294, Betained earnings at the end of December would be o ooo O $26.40