Budgeted sales $($all on credit$)$ for November, December, and January are $$250,000,$$$220,000,$ and $$200,000,$ respectively.

Cash collections related to credit sales are expected to be $75\%$ in the month of sale, $25\%$ in the month following the sale.

The cost of goods sold is $65\%$ of sales.

Each month's $$nding inventory equals $20\%$ of next month's cost of goods sold.

$40\%$ of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month.

Monthly selling and administrative expenses that are paid in cash in the month incurred total $$20,500.$

Monthly depreciation expense is $$20,000.$

The expected merchandise purchases in December are:

Multiple Choice

$$136,800.$

$$140,400.$

$$144,600.$

$$138,400.$