Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow. Sales are budgeted at $290,000 for November, $270,000 for December, and $260,000 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 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 $23,500 Monthly depreciation is $14,500. Ignore taxes Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $573, 780 accumulated depreciation Total assets 21,700 71,10 141,375 1,095,700 $1,330,475 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 255,700 821,700 253,075 $1,330,475 LLL Retained earnings Total liabilities and stockholders' equity 253,075 $1,330,475 The cost of December merchandise purchases would be: Multiple Choice $126,750 O $217,500 O $197625 O S202,500