Beta Corporation is a small wholesaler of gourmet coffee products. Data regarding the store's operations follow: Sales are budgeted at $374,000 for November, $352,000 for December, and $341,000 for January. Collections are expected to be 80% in the month of sale and 20% in the month following the sale. The cost of goods sold is 75% 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 $26,400. Monthly depreciation is $16,500. Ignore taxes. . Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory. Property, plant and equipment, net of $572,000 accumulated depreciation ........ Total assets. $ 22,000 77,000 168,300 1.203.400 $1.470.700 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 279,400 902.000 289.300 $1.470.700 1. Expected cash collections in December are: A) $ 74,800 B) $281,600 C) $352,000 D) $356,400 2. The cost of December merchandise purchases would be: A) $280,500 B) $153,450 C) $259,050 D) $264,000 3. December cash disbursements for merchandise purchases would be: A) $153,450 B) $270,600 C) $264,000 D) $259,050 4. The difference between cash receipts and cash disbursements for December would be: A) $59,400 B) $75,460 C) $31,020 D) $13,420