Calculate Retained earning for December:

Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 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 desires to have an ending merchandise inventory at the end of each month 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 $21,100.

Monthly depreciation is $21,000.

Ignore taxes.

Balance Sheet

October 31

Assets:

Cash $ 25,000

Accounts receivable 77,000

Merchandise inventory 162,400

Property, plant and equipment, net of $624,000 accumulated depreciation 1,026,000

Total assets $ 1,290,400

Liabilities and Stockholders' Equity :

Accounts payable $ 239,000

Common stock 740,000

Retained earnings 311,400

Total liabilities and stockholders' equity

Retained earnings at the end of December would be