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

• Sales are budgeted at $430,000 for November, $410,000 for December, and $400,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
• The cost of goods sold is 85% of sales.
• The company would like to maintain ending merchandise inventories equal to 75% 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 $24,900.
• Monthly depreciation is $15,900.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 20,900
Accounts receivable	70,900
Merchandise inventory	274,125
Property, plant and equipment, net of $572,900 accumulated depreciation	1,094,900
Total assets	$ 1,460,825
Liabilities and Stockholders' Equity
Accounts payable	$ 254,900
Common stock	820,900
Retained earnings	385,025
Total liabilities and stockholders' equity	$ 1,460,825

The cost of December merchandise purchases would be:

Multiple Choice

• $255,000

• $365,500

• $342,125

• $348,500