Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Sales are budgeted at $270,000 for November, $250,000 for December, and $240,000 for January.

Collections are expected to be 50% in the month of sale and 50% in the month following the sale.

The cost of goods sold is 75% of sales.

The company would like to maintain ending merchandise inventories equal to 65% 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 $23,300.

Monthly depreciation is $14,300.

Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 21,900
Accounts receivable	71,900
Merchandise inventory	131,625
Property, plant and equipment, net of $573,900 accumulated depreciation	1,095,900
Total assets	$ 1,321,325
Liabilities and Stockholders' Equity
Accounts payable	$ 255,900
Common stock	821,900
Retained earnings	243,525
Total liabilities and stockholders' equity	$ 1,321,325

December cash disbursements for merchandise purchases would be:

Multiple Choice

$187,500

$182,625

$117,000

$192,750