Chief Broody Company is a small wholesaler of fish products. Data regarding the stores operations follows:

* Sales are budgeted at $330,000 for November; $400,000 for December; and $360,000 for January.

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

* The Cost of Goods Sold is 60% of sales.

* The company would like to maintain ending inventory equal to 70% of the next months Cost of Goods Sold. Payment for merchandise is made in the month following purchase.

* Other monthly expenses to be paid in cash are $21,800.

6. The cost of December merchandise purchases would be:

a. $196,200 c. $ 223,200 b. 212,400 d. 227,400 e. None of the above. The answer is ______.

7. December cash disbursements [payments] for merchandise purchases would be:

a. $196,200 c. $ 223,200 b. 212,400 d. 227,400 e. None of the above. The answer is ______