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

• Sales are budgeted at $440,000 for November, $420,000 for December, and $410,000 for January.
• Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
• The cost of goods sold is 80% 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 $25,000.
• Monthly depreciation is $16,000.
• Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	21,000
Accounts receivable		71,000
Merchandise inventory		246,400
Property, plant and equipment, net of $573,000 accumulated depreciation		1,095,000
Total assets	$	1,433,400
Liabilities and Stockholders' Equity
Accounts payable	$	255,000
Common stock		821,000
Retained earnings		357,400
Total liabilities and stockholders' equity	$	1,433,400

The difference between cash receipts and cash disbursements for December would be:

Multiple Choice

• $61,200

• $45,900

• $106,600

• $34,600