Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $294,000 for November, $314,000 for December, and $214,000 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 $21,500. Monthly depreciation is $23,000. Ignore taxes. Balance Sheet October 31 Assets Cash Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Common stock Total liabilities and stockholders' equity The difference between cash receipts and cash disbursements for December would be: $ 27,000 79,000 176,400 1,008,000 $ 1,290,400 $ 240,000 744,000 306,400 $ 1,290,400 Multiple Choice $27,000 $88,250 $34,250 $54,000