Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: o Sales are budgeted at $330,000 for November, $340,000 for December, and $340,000 for January. o Collections are expected to be 80% in the month of sale, 17% in the month following the sale, and 3% uncollectible. o The cost of goods sold is 75% of sales. o 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. o Other monthly expenses to be paid in cash are $21,800. o Monthly depreciation is $19,000. o Ignore taxes.

Balance Sheet October 31
Assets
Cash	$28,000
Accounts receivable, net of allowance for uncollectible accounts	76,000
Merchandise inventory	173,250
Property, plant and equipment, net of $604,000 accumulated depreciation	1,170,000
Total assets	$1,447,250
Liabilities and Stockholders' Equity
Accounts payable	$255,000
Common stock	840,000
Retained earnings	352,250
Total liabilities and stockholders' equity	$1,447,250

The cost of December merchandise purchases would be:

		$225,000
		$178,500
		$247,500
		$255,000