. Data regarding the GHI Corporation's operations is as 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 Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation 77,000 162,400 1,026,000 Total assets $ 1,290,4001 Liabilities and Stockholders' Equity Accounts payable Common stock $ 239,000 740,000 311,400 Retained earnings Total liabilities and stockholders' equity $ 1,290,400 QUESTION 16 The cost of December merchandise purchases would be: $248,000 $232,000 $117,600 $192,000