Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $307,000 for November, $327,000 for December, and $227,000 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 75% 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 $22,800.

Monthly depreciation is $29,500.

Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	35,000
Accounts receivable		85,500
Merchandise inventory		207,225
Property, plant and equipment, net of $624,000 accumulated depreciation		922,000
Total assets	$	1,249,725
Liabilities and Stockholders' Equity
Accounts payable	$	256,000
Common stock		757,000
Retained earnings		236,725
Total liabilities and stockholders' equity	$	1,249,725

Accounts payable at the end of December would be:

Multiple Choice

$177,750

$245,250

$153,225

$24,525