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

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.

Ignore taxes.

Balance Sheet
October 31
Assets
Cash	$ 25,000
Accounts receivable	77,000
Merchandise inventory	162,400
Property, plant and equipment, net of $624,000 accumulated depreciation	1,026,000
Total assets	$ 1,290,400
Liabilities and Stockholders' Equity
Accounts payable	$ 239,000
Common stock	740,000
Retained earnings	311,400
Total liabilities and stockholders' equity	$ 1,290,400

The difference between cash receipts and cash disbursements for December would be:

Multiple Choice

$46,600

$19,200

$13,700

$38,700