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

Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 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 $19,400.

Monthly depreciation is $28,500.

Ignore taxes.

Balance Sheet October 31
Assets
Cash	$	34,000
Accounts receivable		84,500
Merchandise inventory		170,800
Property, plant and equipment, net of $624,000 accumulated depreciation		920,000
Total assets	$	1,209,300
Liabilities and Stockholders' Equity
Accounts payable	$	254,000
Common stock		755,000
Retained earnings		200,300
Total liabilities and stockholders' equity	$	1,209,300

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

$41,200

$43,400

$40,200

$42,500