Data regarding the store's operations follow:

• Sales are budgeted at $310,000 for November, $330,000 for December, and $230,000 for January.
• Collections are expected to be 60% in the month of sale and 40% in the month following the sale.
• The cost of goods sold is 70% of sales.
• The company desires to have an ending merchandise inventory at the end of each month equal to 90% 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 $23,100.
• Monthly depreciation is $31,000.
• Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 36,500
Accounts receivable	87,000
Merchandise inventory	195,300
Property, plant and equipment, net of $624,000 accumulated depreciation	925,000
Total assets	$ 1,243,800
Liabilities and Stockholders' Equity
Accounts payable	$ 259,000
Common stock	760,000
Retained earnings	224,800
Total liabilities and stockholders' equity	$ 1,243,800

Retained earnings at the end of December would be: