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

• Sales are budgeted at $230,000 for November, $210,000 for December, and $200,000 for January.
• Collections are expected to be 40% in the month of sale and 60% in the month following the sale.
• The cost of goods sold is 65% of sales.
• The company would like to maintain ending merchandise inventories equal to 55% 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 $22,900.
• Monthly depreciation is $13,900.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	22,300
Accounts receivable		72,300
Merchandise inventory		82,225
Property, plant and equipment, net of $574,300 accumulated depreciation		1,096,300
Total assets	$	1,273,125
Liabilities and Stockholders' Equity
Accounts payable	$	256,300
Common stock		822,300
Retained earnings		194,525
Total liabilities and stockholders' equity	$	1,273,125

The cost of December merchandise purchases would be:

Multiple Choice

• $149,500

• $71,500

• $132,925

• $136,500