Balance sheet and other cash information for International Gourmet Foods is presented below.

• Sales are budgeted at $230,000 for November, $210,000 for December, and $200,000 for January.
• Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
• The cost of goods sold is 65% of sales.
• The company would like to maintain ending merchandise inventories equal to 55% 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 $13,900.
• Ignore taxes.

The difference between cash receipts and cash disbursements for December would be:

Multiple Choice

• $56,750

• $42,563

• $29,225

• $98,100