Bracken Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $310,000 for November, $320,000 for December, and $320,000 for January. Collections are expected to be 80% in the month of sale, 19% 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 70% 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 $21,600. Monthly depreciation is $18,800. Ignore taxes. Balance Sheet October 31 Assets Cash $42,000 Accounts receivable, net of allowance for uncollectible accounts 90,000 Merchandise inventory 151,900 Property, plant and equipment, net of $618,000 accumulated depreciation 1,240,000 Total assets $1,523,900 Liabilities and Stockholders' Equity Accounts payable $174,150 Common stock 980,000 Retained earnings 369,750 Total liabilities and stockholders' equity $1,523,900 The cost of December merchandise purchases would be: $156,800 $224,000 $90,000 $42,000