Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: - Sales are budgeted at $304,000 for November, $324,000 for December, and $224,000 for January. - Collections are expected to be 60% in the month of sale and 40% 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 90% 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 $22,500. - Monthly depreciation is $2,000. - Ignore taxes. Retained earnings at the end of December would be: Multiple Choice $293,700 $294,700 $342,700 $324,700 Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: - Sales are budgeted at $304,000 for November, $324,000 for December, and $224,000 for January. - Collections are expected to be 60% in the month of sale and 40% 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 90% 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 $22,500. - Monthly depreciation is $2,000. - Ignore taxes. Retained earnings at the end of December would be: Multiple Choice $293,700 $294,700 $342,700 $324,700