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

Sales are budgeted at $270,000 for November, $280,000 for December, and $280,000 for January.

Collections are expected to be 85% in the month of sale, 12% in the month following the sale, and 3% uncollectible.

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 $21,200.

Monthly depreciation is $18,400. Ignore taxes.

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

$27,600

$11,700

$70,800

$9,000

Balance Sheet October 31 Assets Cash Accounts receivable, net of allowance for uncollectible accounts Merchandise inventory Property, plant and equipment, net of $622,000 accumulated depreciation Total assets $46,000 94,000 151,200 1,260,000 $1,551,200 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $356,450 820,000 374,750 $1,551,200