Delly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow Sales are budgeted at $254,000 for November, $294,000 for December, and $221,000 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 80% 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 $15,600 . Monthly depreciation is $26,500 Ignore taxes $ Balance sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets 32,000 82,500 182,880 916,000 $1,213,380 Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 250,000 751,000 212,380 $1,213,380 Retained earnings Total liabilities and stockholders' equity 212,380 $1,213,380 Retained earnings at the end of December would be: Multiple Choice $212,380 $254,380 S237780 () $221,1BO