Dilly Farm Supply is located in a small town in the rural west. Data regarding the stores operations follow: e Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January Collections are expected to be 65% in the month of sale and 35% 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 70% 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 $21,100 Monthly depreciation is $21,000. e Ignore taxes. Balance Sheet October 3:1 Assets 25,000 77.000 Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total 162,400 1,026,000 1,290,400 assets Liabilities and