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 Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,900 accumulated depreciation Total assets $ 21,900 71,900 131,625 1,095,900 $1,321,325 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 255,900 821,900 243,525 $1,321,325 The cost of December merchandise purchases would be: Multiple Choice O $187,500 $117,000 O $202,500 O $182,625 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 Accounts receivable Merchandise inventory Property, plant and equipment, net of $573,900 accumulated depreciation Total assets $ 21,900 71,900 131,625 1,095,900 $1,321,325 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 255,900 821,900 243,525 $1,321,325 The cost of December merchandise purchases would be: Multiple Choice O $187,500 $117,000 O $202,500 O $182,625