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

Sales are budgeted at $303,000 for November, $323,000 for December, and $223,000 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 $22,400.

Monthly depreciation is $27,500.

Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	33,000
Accounts receivable		83,500
Merchandise inventory		181,800
Property, plant and equipment, net of $624,000 accumulated depreciation		918,000
Total assets	$	1,216,300
Liabilities and Stockholders' Equity
Accounts payable	$	252,000
Common stock		753,000
Retained earnings		211,300
Total liabilities and stockholders' equity	$	1,216,300

The cost of December merchandise purchases would be: