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

Sales are budgeted at $340,000 for November, $320,000 for December, and $310,000 for January.

Collections are expected to be 80% in the month of sale and 20% 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 60% 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 $24,000.

Monthly depreciation is $15,000.

Ignore taxes.

Balance Sheet

October 31

Assets

Cash $ 20,000

Accounts receivable 70,000

Merchandise inventory 153,000

Property, plant and equipment, net of $572,000 accumulated depreciation 1,094,000

Total assets $ 1,337,000

Liabilities and Stockholders' Equity

Accounts payable $ 254,000

Common stock 820,000

Retained earnings 263,000

Total liabilities and stockholders' equity $ 1,337,000

Expected cash collections in December are:

a

$68,000

b

$256,000

c

$320,000

d

$324,000