Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: o Sales are budgeted at $410,000 for November, $512,000 for December, and $354,000 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 65% 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 $26,100. o Monthly depreciation is $22,300. o Ignore taxes.

Balance Sheet October 31
Assets
Cash	$30,900
Accounts receivable, net of allowance for uncollectible accounts	88,400
Merchandise inventory	219,000
Property, plant and equipment, net of $622,000 accumulated depreciation	1,244,000
Total assets	1,582,300
Liabilities and Stockholders' Equity
Accounts payable	$277,000
Common stock	840,000
Retained earnings	465,300
Total liabilities and stockholders' equity	$1,582,300

The cost of December merchandise purchases would be: