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

Sales are budgeted at $294,000 for November, $314,000 for December, and $214,000 for January.

Collections are expected to be 70% in the month of sale and 30% 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 80% 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 $21,500.

Monthly depreciation is $23,000.

Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	27,000
Accounts receivable		79,000
Merchandise inventory		176,400
Property, plant and equipment, net of $624,000 accumulated depreciation		1,008,000
Total assets	$	1,290,400
Liabilities and Stockholders' Equity
Accounts payable	$	240,000
Common stock		744,000
Retained earnings		306,400
Total liabilities and stockholders' equity	$	1,290,400

Retained earnings at the end of December would be:

Multiple Choice

$346,900

$306,400

$369,400

$350,800