Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operation follow Sales are budgeted at $310,000 for November, $320,000 for December, and $320,000 for January. . Collections are expected to be 75% in the month of sale, 24% in the month following the sale, and 1% uncollectible The cost of goods sold is 70% 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 pald In cash are $20,800 Monthly depreclation is $18,000. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts recelvable, net of allowance for uncollectible accounts Merchandise Inventory Property, plant and equipment, net of $626,000 accumulated depreclation Total assets $50,000 98,000 130,200 1,280,000 $1,558,200 Liabilities and Stockholders' Equity Accounts payable Common stock Retalned earnings Total liablities and stockholders' equity $318,450 860,000 379,750 $1,558,200 Expected cash collections in December are