Data for Dilly Farm Supply are listed below Sales are budgeted at $290 090 for November , $310 090 for December and $210 090 for January Collections are expected to be 65% in the month of sale , 33 0 in the month following the sal and 20 uncollectible The cost of goods sold is 80% of sales The company purchases 70% of its merchandise in the month prior to the month of sale and 3096 Of6 in the month of sale Payment for merchandise is made in the month following the purchas Other monthly expenses to be paid in cash are $21 100 Monthly depreciation is $21 090 Ignore taxes Statement of Financial Position - October 31 201 1 Assets Cash $25 000 Accounts receivable ( net of allowance for uncollectible accounts ) 870.000 Inventory $162 400 Plant property , and equipment ( net of accumulated depreciation ) $1 026000 Total assets $1 290 400 Liabilities and Stockholders Equity Accounts Payable $239009 Common Stock $740 090 Retained Earning $31 1 400 Total liabilities and stockholders equity $1 290 400 10 Amount of cash required for merchandise purchases for December would be A $192 090 B . $243 200 C.$17 600 D. $248 000 1 1 . The projected profit for December would be A . $13 700 B . 832, 900 C. $40 900 D. $19 900