Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: o Sales are budgeted at $412,000 for November, $518,000 for December, and $414,000 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 70% 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 $22,500. o Monthly depreciation is $28,900. o Ignore taxes.

Balance Sheet October 31
Assets
Cash	$33,800
Accounts receivable, net of allowance for uncollectible accounts	78,200
Merchandise inventory	184,000
Property, plant and equipment, net of $642,000 accumulated depreciation	1,284,000
Total assets	1,580,000
Liabilities and Stockholders' Equity
Accounts payable	$260,000
Common stock	840,000
Retained earnings	480,000
Total liabilities and stockholders' equity	$1,580,000

The cost of December merchandise purchases would be:

$311,640

$202,860

$288,400

$362,600