Dilbert Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: o Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January. o Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible. o The cost of goods sold is 65% of sales. o The company desires to have an ending merchandise inventory at the end of each month equal to 60% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. o Other monthly expenses to be paid in cash are $20,300. o Monthly depreciation is $20,000. o Ignore taxes. Balance Sheet October 31 Assets Cash $27,000 Accounts receivable, net of allowance for uncollectible accounts 79,000 Merchandise inventory 101,400 Property, plant and equipment, net of $574,000 accumulated depreciation 1,082,000 Total assets $1,289,400 Liabilities and Stockholders' Equity Accounts payable $169,000 Common stock 740,000 Retained earnings 380,400 Total liabilities and stockholders' equity $1,289,400 Accounts payable at the end of December would be: $149,500 $59,800 $141,700 $81,900