Daly Farm Supply is iocated in a small town in the rural west. Data regarding the store's operations follow: - Sales are budgeted at $303,000 for November, $323,000 for December, and $229,000 for January. - Collections are expected to be 70% in the month of sale and 30% in the month following the sale. - The cost of goods sold is 75% of sales. - The company desires to have an ending merchandise inventory at the end of each month equal to 80% 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 $22,400. - Monthly depreciation is $27,500. - ignore taxes. The cost of December merchandise purchases would be: Multiple Choice $185,850 $195,650 $182,250 $192,250